Vijaya Diagnostic, which will be the fifth diagnostic chain to be listed on the stock exchanges, has raised Rs 566.12 crore from 29 anchor investors including sovereign funds Abu Dhabi Investment Authority (ADIA) and Kuwait Investment Authority (KIA) ahead of its initial public offering (IPO).
The diagnostic firm raised the amount by allotting 10.66 million shares at the upper price band of Rs 531 per share, said Vijaya Diagnostic in a statement.
The price band has been fixed at Rs 522-531 per share.
Domestic blue-chip mutual funds such as SBI Mutual Fund, Axis Mutual Fund, Aditya Birla Mutual Fund, ICICI Prudential Mutual Fund, Nippon India Mutual Fund, Franklin Templeton Mutual Fund, Mirae Mutual Fund and DSP Mutual Fund also came in as anchor investors.
Other investors include Kotak India Growth Fund, Goldman Sachs, Pioneer Investment Fund, CLSA, ICICI Prudential Life, SBI Life Insurance, Kotak Life Insurance and Bajaj Allianz Life.
Anchor investors, also known as cornerstone investors, are institutions that accept a one-month lock-in for a sizeable allocation of shares.
Their participation highlights investors’ confidence in an IPO and sets a benchmark for the investor community at large.
Vijaya Diagnostic, which is backed by private equity firm Kedaara Capital, filed for its IPO in June this year. It became the second diagnostics firm to file for an IPO this year.
Krsnaa Diagnostics, backed by Somerset, Phi Capital and Kitara, listed on the stock exchanges last month. Dr Lal PathLabs became the first diagnostics firm to list on the exchanges in late 2015.
Thyrocare Technologies and Metropolis Healthcare also followed suit in the following years.
Vijaya Diagnostic's IPO is an offer for sale (OFS) of 35.69 million shares by shareholders including Kedaara and promoters from September 1-3.
ICICI Securities, Edelweiss Financial Services and Kotak Mahindra Capital Co Ltd are the lead managers to the issue.
The company which was founded in 1981 by Surendranath Reddy, provides around 740 routine and 870 specialised pathology tests and about 220 basic and 320 advanced radiology tests.