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<ul><li>Analysts believe Vijaya Diagnostics's tepid subscription, higher valuation and price band may go against the public issue.</li><li>For <keyword id="11958218" type="General" weightage="20" keywordseo="ami-organics-ipo" source="Orion">Ami Organics IPO</keyword> analysts suggest short-term investors to book profit on listing day if they receive the allotment.</li><li>Check out the latest market news and updates on Business Insider.</li></ul><keyword id="2171617" type="General" weightage="20" keywordseo="vijaya-diagnostic-centre" source="Orion">Vijaya Diagnostic Centre</keyword> and <keyword id="6926409" type="General" weightage="20" keywordseo="ami-organics" source="Orion">Ami Organics</keyword> are set to be listed on exchanges tomorrow (September 14). However, the fate of the two IPOs may be different, if the grey market premium is considered to be an indicator. Grey Market is an unofficial market where individuals buy/sell IPO shares or applications before they are officially launched for trading on the stock exchanges. The IPO of companies was open to subscribe from September 1 to September 3. Ami Organics IPO may see a strong listing gains tomorrow The speciality chemical company is indicating a strong premium of ₹156 in the grey market ahead of its listing, also reflecting its robust subscription numbers. The IPO received bids for 42.22 crore as against the IPO size of 65.36 lakh shares on the last day of bidding. In the last few months, another specialty chemical company Clean Science and Technology and Tatva Chintan Pharma Chem made a strong listing on the exchanges. “We suggest short-term investors to book profit on listing day if they receive the allotment,” said Yash Gupta, equity research analyst at Angel Broking as he believes valuation is expensive. Ami Organics is all set to open around ₹570 crore initial public offering (IPO) for investors, indicating a premium of ₹156 a share in the grey market . With the IPO proceeds, the Gujarat-based specialty chemicals company will pay off its debt worth ₹140 crore and become debt free, Naresh Patel, chief managing director of Ami Organics, <a href="https://www.businessinsider.in/stock-market/news/ami-organics-wants-to-become-debt-free-post-the-ipo/articleshow/85781458.cms">said in an interview with Business Insider</a>. [hyperlink] Vijay Diagnostic Centre IPO might open weak on exchanges The chain of medical testing, Vijaya Diagnostic is trading at a discount in the grey market. Shares were available at a discount of around ₹12 a piece, to the issue price of ₹522, in the grey market. Analysts believe Vijaya's tepid subscription, higher valuation and price band may go against the public issue. “We are not expecting any big listing gain from <keyword id="11952026" type="General" weightage="20" keywordseo="vijaya-diagnostic-centre-ipo" source="Orion">Vijaya Diagnostic Centre IPO</keyword> as we believe that all the short term positives have been priced in the IPO price i.e ₹531,'' said Gupta from Angel Broking. The IPO received bids for 11.36 crore shares against the 2.50 crore shares on offer. However, analysts at Ventura Capital recommend subscribing to the IPO for long-term investing with a price objective of ₹672, representing an upside of 27% over the next 24 months attributing the company’s strong cash balance for future growth. The firm has ₹250 crore cash on its books, Sunil Chandra Kondapally, executive director at Vijaya Diagnostic, <a href="https://www.businessinsider.in/stock-market/news/ipo-bound-vijaya-diagnostics-is-planning-more-acquisitions-in-east-india/articleshow/85755911.cms">told Business Insider</a>. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/tcs-wipro-and-apple-prepare-to-bring-people-back-to-work-from-office/articleshow/86160193.cms">As TCS, Wipro and Apple prepare to bring people back to work, there are many lessons from the last 18 months to consider</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/retail/news/radhakishan-damani-added-4-4-billion-to-his-net-worth-and-is-now-among-worlds-100-richest-people/slidelist/86160861.cms">Billionaire investor and DMart founder Radhakishan Damani is now among world’s 100 richest people</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/jet-airways-to-soon-start-its-domestic-flights-soon-after-march-2022/articleshow/86159868.cms">Jet Airways may start domestic flights after March 2022</a>

Grey market premium shows Ami Organics may shine on listing while Vijaya Diagnostic may stutter

<ul><li>Shares of <keyword id="11949918" type="General" weightage="20" keywordseo="vijaya-diagnostic" source="Orion">Vijaya Diagnostic</keyword> listed on the stock exchanges at ₹540 per share, which is less than 2% higher than the issue price.</li><li>However, the stock jumped over 16% compared to the price at which shares were allotted during the IPO. </li><li>The company’s initial public offer (IPO) was oversubscribed by over 4 times.</li><li>It intends to use the proceeds of the IPO towards deepening its presence in Andhra Pradesh and Telangana, apart from expanding into East India.</li></ul>Shares of Vijaya Diagnostic, one of the two new companies to get listed on the Indian stock exchanges, debuted at ₹540 per share, which is less than 2% above its issue price of ₹531. The Hyderabad-based diagnostics company has a strong presence in southern India in the states of Andhra Pradesh and Telangana. It intends to expand in some eastern states primarily through acquisition, thanks to the IPO proceeds. <a href="https://www.businessinsider.in/stock-market/news/ipo-bound-vijaya-diagnostics-is-planning-more-acquisitions-in-east-india/articleshow/85755911.cms">Vijaya Diagnostic says</a> it has a market share of 7% in its home market – Andhra Pradesh and Telangana. Going forward, it looks to capture close to 20% of it. The market size of the business in both states is worth ₹5,100 crore, Kondapally said in the interview. Over 96% of the Vijaya Diagnostic’s revenue comes from Hyderabad, the rest of Telangana, and the Andhra Pradesh region. As of 2:10 p.m., Vijaya Diagnostic’s shares were trading at ₹619 per share, which is up by nearly 16.6%. The grey market premium for Vijaya Diagnostic’s shares was hovering around ₹5, which translates to approximately 1% of the issue price of ₹531. It is worth noting that grey market premium is not an official measure of market premium. The diagnostics company’s business model is different from that of similar listed diagnostics companies -- Metropolis Lab, Dr Lal PathLabs. “Right from inception our focus has been to offer both radiology, pathology and imaging all under one roof so that the patient does not have to visit any other place. In that sense we are quite different as all our centres offer these services. 93% of our revenue comes from business-to-consumer (B2C) business whereas other players have more of [a] business-to-business (B2B) model,” said Sunil Chandra Kondapally, executive director at Vijaya Diagnostics in an interview with Business Insider. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/ami-organics-ipo-lists-50-higher-than-the-issue-price-at-910-per-share/articleshow/86189649.cms">Ami Organics dazzles on its stock market debut, lists at a premium of 50%</a> <a href="https://www.businessinsider.in/stock-market/news/sansera-engineering-ipo-is-opening-from-today-and-closes-on-september-16/articleshow/86189006.cms">INTERVIEW: An auto parts maker for Maruti, Bajaj and Honda is betting that Indian car makers will take a leaf out of Tesla’s playbook</a> <a href="https://www.businessinsider.in/tech/gadgets/news/xiaomis-first-smart-glasses-can-take-calls-capture-photos-translate-text-and-more/articleshow/86189049.cms">Xiaomi’s first smart glasses can take calls, capture photos, translate text and more</a>

Vijaya Diagnostic sees a tepid listing, increases by over 16%

<ul><li><keyword id="11949917" type="General" weightage="20" keywordseo="vijaya-diagnostic-ipo" source="Orion">Vijaya Diagnostic IPO</keyword> will open for subscription on September 1 and close on September 3.</li><li>Analysts advise investors to subscribe to the IPO because of the company’s strong footing in south India and that it is cash rich and does not require any further capital for growth.</li><li>The diagnostics lab chain is looking to raise ₹1,895 crore through an entire offer for sale (OFS) from existing promoters with 3.56 crore equity shares.</li></ul>Diagnostics lab chain <keyword id="11949918" type="General" weightage="20" keywordseo="vijaya-diagnostic" source="Orion">Vijaya Diagnostic</keyword> will open its ₹1,895 crore initial public offering (IPO) for subscription from tomorrow, September 1, and will close on September 3. Analysts advise investors to subscribe to the IPO given the chain’s strong footing in south India. “The company is cash rich and does not require any further capital for growth,” said Ventura Securities while recommending to ‘subscribe’ to the IPO for long-term investing with a price target of ₹672, indicating an upside of 27% over the next 24 months. However, the <keyword id="938640" type="General" weightage="20" keywordseo="grey-market-premium" source="Orion">grey market premium</keyword> for Vijaya Diagnostic IPO is not very exciting. The firm has ₹250 crore cash on its books, Sunil Chandra Kondapally, executive director at Vijaya Diagnostic, <a href="https://www.businessinsider.in/stock-market/news/ipo-bound-vijaya-diagnostics-is-planning-more-acquisitions-in-east-india/articleshow/85755911.cms">told Business Insider</a>. Here are some of the important details of the Vijaya Diagnostic IPO: <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #cccccc 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Price band </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #cccccc 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹522-₹531 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO open date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 1 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO close date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 3 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Allotment date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 8 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Initiation of refunds </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 9 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Credit of shares to demat account </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 13 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO listing date </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 14 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Minimum lot </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">28 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table> Meanwhile, analysts at Angel Broking believe that all the short term positives are priced in and indicate a not-so-big listing for Vijaya Organics IPO. “The company has fixed the IPO price at [a] price to earning [sic] of 35.5 times of FY2021 earning, we believe that all the short-term positives have been priced in...Currently, the grey market premium for the IPO is at ₹50 which is 8.2% of IPO price, so the grey market is not suggesting any big listing...We have a neutral outlook for Vijaya organics IPO,” said Yash Gupta, equity research analyst at Angel Broking. Analysts at Ventura Securities expects the company’s revenue to grow at a compound annual growth rate (CAGR) of 16.7% to ₹600 crore by FY24 driven by its deepening footprints in core markets of Telangana and Andhra Pradesh, opening additional diagnostic centres and expanding adjacent geographies. Analysts at Kotak Securities highlight the firm’s long track record of delivering consistent profitable growth, with strong cash generation and return metrics. More about the company The company offers a “one-stop solution” for pathology and radiology testing services through its 80 diagnostic centres and 11 reference laboratories i.e. labs that perform routine and speciality tests in high volume, across 13 cities and towns in the states of Telangana and Andhra Pradesh. The company claims it has a 7% market share in the two states with an estimated market size of ₹5,100 crore. <div type="image" title="Vijaya correct chart" height="900" width="1200" msid="85789071" hostid="261"></div> Aside from the two states, it also has centres National Capital Region and Kolkata. It has a strong presence in south Indian states. However, 96% of its revenue comes from the city of Hyderabad alone, as per the draft red herring prospectus (DRHP). Existing promoters, including private equity investor Kedaara Capital, are selling 3.56 crore equity shares via IPO. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/enterprise/enterprise-software/news/saas-company-icertis-is-looking-to-hit-the-public-market-next-year/articleshow/85786657.cms">After Freshworks, Icertis is looking for an IPO for next year in the US</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ami-organics-wants-to-become-debt-free-post-the-ipo/articleshow/85781458.cms">Ami Organics wants to become debt-free post the IPO, to cut dependence on China in the coming years</a>

Vijaya Diagnostic IPO ⁠— analysts say ‘subscribe’ but the grey market premium isn’t exciting

<ul><li>The diagnostic lab chain sees weak response from investors on the second day of the IPO bidding as well.</li><li><keyword id="11949917" type="General" weightage="20" keywordseo="vijaya-diagnostic-ipo" source="Orion">Vijaya Diagnostic IPO</keyword> was subscribed 0.47 times on September 2.</li><li>Analysts recommend subscribing to the stock for the long term relying on the company’s strong presence in south India.</li></ul>Vijaya Diagnostic gets weak response from investors on the second day of its initial public offering (IPO) as well. The portion reserved for institutional investors was subscribed 0.32 times while that for retail investors was subscribed 0.74 times. Overall, Vijaya Diagnostic’s IPO was subscribed 0.47 times. The IPO received bids for 1.81 crore equity shares as against the issue size of 2.50 crore equity shares. The grey market premium for the IPO was also not very exciting as it indicates ₹15-₹20 premium. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Issue details </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;"> </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Price band </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">₹522 to ₹531 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO open date </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 1 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO close date </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 3 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Allotment date </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 8 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Initiation of refunds </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 9 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Credit of shares to demat account </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 13 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">IPO listing date </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">September 14 </td></tr><tr><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Minimum lot </td><td style="border-left:solid #000000 0.75pt;border-right:solid #000000 0.75pt;border-bottom:solid #000000 0.75pt;border-top:solid #000000 0.75pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">28 </td></tr></tbody><tbody></tbody><tbody></tbody><tbody></tbody><tbody></tbody></table>Analysts advise investors to subscribe to the IPO given the chain’s strong footing in south India. “The company is cash rich and does not require any further capital for growth,” said Ventura Securities while recommending to ‘subscribe’ to the IPO for long-term investing with a price target of ₹672, indicating an upside of 27% over the next 24 months. The firm has ₹250 crore cash on its books, Sunil Chandra Kondapally, executive director at Vijaya Diagnostic, <a href="https://www.businessinsider.in/stock-market/news/ipo-bound-vijaya-diagnostics-is-planning-more-acquisitions-in-east-india/articleshow/85755911.cms">told Business Insider</a>. The company offers a “one-stop solution” for pathology and radiology testing services through its 80 diagnostic centres and 11 reference laboratories i.e. labs that perform routine and speciality tests in high volume, across 13 cities and towns in the states of Telangana and Andhra Pradesh. The company claims it has a 7% market share in the two states with an estimated market size of ₹5,100 crore. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/ami-organics-ipo-oversubscribed-on-the-first-day-of-bidding/articleshow/85832973.cms"></a><a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/indusind-bank-complaint-leads-to-the-arrest-of-ceo-and-cfo-of-karvy-broking/articleshow/85868059.cms">IndusInd Bank complaint leads to the arrest of CEO and CFO of Karvy Broking</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/investment/news/doge-meme-nft-is-being-auctioned-off-in-17-billion-pieces/articleshow/85833023.cms"></a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/amazon-to-hire-8000-direct-workforce-across-35-cities-in-india-this-year/articleshow/85867399.cms">Amazon to hire 8,000 direct workforce across 35 cities in India this year</a>

Vijaya Diagnostic IPO sees tepid response on the second day of bidding

<ul><li>Vijaya Diagnostic IPO is the second diagnostic lab chain to list publicly in recent times after <keyword id="11265915" type="General" weightage="20" keywordseo="krsnaa-diagnostics" source="Orion">Krsnaa Diagnostics</keyword>.</li><li>The IPO of the company will open on September 1 and close on September 3 with a price band of ₹522 to ₹531 per share.</li><li>The company aims to deepen its presence in Andhra Pradesh, Telangana and is looking to acquire good diagnostic firms in eastern India to explore business opportunities there, said Sunil Chandra Kondapally, executive director at Vijaya Diagnostic in an interview with Business Insider.</li></ul>Vijaya Diagnostic, which is to launch its initial public offering (IPO) on Wednesday, is looking to acquire more diagnostics firms in eastern India to expand its business. The company has a strong presence in southern India in the states of Andhra Pradesh and Telangana and now looks to expand in some eastern states primarily through acquisition. The company offers a “one-stop solution” for pathology and radiology testing services through its 80 diagnostic centres and 11 reference laboratories across 13 cities and towns in the states of Telangana and Andhra Pradesh and in the National Capital Region and Kolkata. “We are a debt free company and due to our strong margin we also have liquidity on the balance sheet. We have built up a ₹250 crore cash on the book so priority is to use that corpus for the growth of the business. So we are definitely open for acquisition opportunities in any markets of interest,” said Sunil Chandra Kondapally, executive director at <keyword id="182111" type="General" weightage="20" keywordseo="vijaya-diagnostics" source="Orion">Vijaya Diagnostics</keyword> in an interview with Business Insider. The diagnostics company’s business model is different from that of similar listed diagnostics companies -- <keyword id="122279" type="General" weightage="20" keywordseo="metropolis" source="Orion">Metropolis</keyword> Lab, <keyword id="122277" type="General" weightage="20" keywordseo="dr-lal-pathlabs" source="Orion">Dr Lal PathLabs</keyword>. “Right from inception our focus has been to offer both radiology, pathology and imaging all under one roof so that the patient does not have to visit any other place. In that sense we are quite different as all our centres offer these services. 93% of our revenue comes from business-to-consumer (B2C) business whereas other players have more of [a] business-to-business (B2B) model,” added Kondapally. Further, the company is in hunt for diagnostics firms that have a similar kind of B2C business model with brand visibility. Vijaya Diagnostic Centre’s IPO is an entire offer for sale (OFS) from existing promoters of 3.56 crore equity shares. The company’s founder Dr. S. Surendranath Reddy will sell 50.98 lakh shares, Karakoram Limited will sell up to 2.94 crore shares and Kedaara Capital will sell partial stake of up to 11.02 lakh shares. The private equity investor and the promoter company are not exiting completely from the firm as post-issue Kedaara Capital will hold 10% stake in the company and the promoter will have 55% shareholding and remaining 35% will be available publicly for investors. Vijaya Diagnostic says it has a market share of 7% in its home market -- Andhra Pradesh, Telangana. Going forward, it looks to capture close to 20% of it. The market size of the business in both states is worth ₹5,100 crore, Kondapally said in the interview. The diagnostics company’s revenue and profit have also been increasing consistently. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY21 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY20 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">FY19 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Net profit (in ₹ crore) </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">84.9 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">62.5 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">46.2 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Revenue (in ₹ crore) </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">388.5 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">354.1 </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">302.9 </td></tr></tbody><tbody></tbody></table> The latest acquisition by the company in east India was listed firm Medinova Diagnostics Services in 2014, which had established centres in Kolkata. The subsidiary now contributes 3.7% (June quarter) of revenue to the company. Hence, Vijaya Diagnostic plans to add more centres in that region. Over 96% of the Vijaya Diagnostic’s revenue comes from Hyderabad, the rest of Telangana, and the Andhra Pradesh region. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/airtels-board-approves-raising-funds-of-up-to-21000-crore/articleshow/85737069.cms">Airtel’s board approves raising funds of up to ₹21,000 crore</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/india/news/dcga-extends-ban-on-international-passenger-flights-till-september-30/articleshow/85735218.cms">DCGA extends ban on international passenger flights till September 30</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/sports/news/tokyo-paralympics-paddler-bhavinaben-patel-wins-historic-silver-in-womens-singles-tables-tennis/articleshow/85731500.cms">Tokyo Paralympics: Paddler Bhavinaben Patel wins historic silver in women's singles tables tennis</a>

IPO-bound Vijaya Diagnostic is planning more acquisitions in east India to expand business

<ul><li>Shares of blockbuster <keyword id="35156" type="General" weightage="20" keywordseo="ipos" source="Orion">IPOs</keyword> like <keyword id="10896637" type="General" weightage="20" keywordseo="paras-defence-and-space-technologies" source="Orion">Paras Defence and Space Technologies</keyword>, <keyword id="6926409" type="General" weightage="20" keywordseo="ami-organics" source="Orion">Ami Organics</keyword> have been picked by the mutual fund industry in huge amounts in September.</li><li>This comes in line with the industry’s growing equity inflows and record SIP contribution every month.</li><li>As of September, the average asset under management of the MF industry stood at ₹37 trillion.</li></ul>The ₹37 trillion mutual fund (MF) industry has together invested about ₹15.89 billion in five newly listed IPO shares in September. IPO craze is not just limited to retail investors but also the mutual fund industry who have invested in many recently listed IPOs including blockbusters like Paras Defence and Space Technologies. Nine asset management companies (AMCs) hold shares of diagnostic lab chain <keyword id="11949918" type="General" weightage="20" keywordseo="vijaya-diagnostic" source="Orion">Vijaya Diagnostic</keyword> Centre worth ₹823 crore. Here are new IPO stocks added by <keyword id="6357979" type="General" weightage="20" keywordseo="mutual-funds" source="Orion">mutual funds</keyword> in September 2021 <table style="border-width: initial; border-style: none;"></colgroup><tbody><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Market value (₹ crore) </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Vijaya Diagnostic Centre </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">823.45 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Aditya Birla Sun Life AMC </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">374.95 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Sansera Engineering </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">242.27 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">AMI Organics </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">129.46 </td></tr><tr><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">Paras Defence and Space Technologies </td><td style="border-left:solid #000000 0.8333325pt;border-right:solid #000000 0.8333325pt;border-bottom:solid #000000 0.8333325pt;border-top:solid #000000 0.8333325pt;vertical-align:bottom;padding:2pt 2pt 2pt 2pt;overflow:hidden;overflow-wrap:break-word;">19.25 </td></tr></tbody></table> Among these, Paras Defence and Space Technologies is one of the blockbuster IPOs in history as the stock opened at 171% premium on the listing day. Moreover, the stock has given 121% additional returns post listing. Mutual fund industry’s aggressive buying can be attributed to positive equity inflows especially those through SIP every month. In September, SIP inflows hit an all time-high as inflows crossed ₹10,000 crore for the first time in a month This resulted in the overall mutual funds industry's assets under management rising to nearly ₹37 lakh crore in September, registering an over 33% growth compared to the year-ago period, showed AMFI data. Robust buying across sectors and stocks giving significant returns has led to benchmark indices Nifty 50 and Sensex gaining nearly 30% returns in 2021 so far, becoming the top performers among other Asian equity markets. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/reliance-jios-september-earnings-to-be-driven-by-aggressive-subscriber-additions/articleshow/87178742.cms">Reliance Jio’s September earnings to be driven by aggressive subscriber additions</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/with-scoopwhoop-and-popxo-on-its-side-heres-what-myglamm-intends-to-do/articleshow/87177789.cms">With ScoopWhoop and POPxo on its side, here’s what MyGlamm intends to do</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/auto/news/tesla-urges-indian-government-to-slash-import-taxes-on-electric-vehicles/articleshow/87177793.cms">Tesla urges Indian government to slash import taxes, requests a meeting between Elon Musk and Prime Minister Modi</a>

India’s mutual fund industry gets its hands on blockbuster IPOs like Paras Defence and others for ₹1500 crore in September

<ul><li>Indian consumer electronics brand <keyword id="53189" type="General" weightage="20" keywordseo="boat" source="Orion">boAt</keyword> used to make all its products in China, but the pandemic gave the startup a rude wake-up call.</li><li>Over the last one year, it has started manufacturing in Vietnam and India in order to de-risk its manufacturing.</li><li>The company is currently manufacturing about 15 of its products in India with the help of local partners.</li><li>boAt has quickly risen to capture nearly a third of the smartwatches and audio market in India, where it competes with Samsung and Apple.</li></ul>CORRECTION: An earlier version of the article had said that bulk of the company's production had moved to Vietnam and not India. However, after clarification from the company, the story has been corrected to reflect facts and data provided by the company. India will become the biggest production hub for boAt after China. Indian consumer electronics brand boAt used to make all its products in China, but the pandemic gave the New Delhi-based startup a rude wake-up call. Founder Aman Gupta had to set up alternative factories in other countries. Eighteen months later 9% of boAt’s manufacturing happens in India. India’s recently unveiled production-linked incentive (PLI) scheme is attractive, but not enough for the firm to make India its biggest production hub yet. China continues to make 90% of its production bulk, while the latest Vietnam market is adding another 1%. The company’s products were completely made in China until February 2020. In just about 5 years, the startup, whose last <a href="https://economictimes.indiatimes.com/tech/funding/qualcomm-ventures-invests-in-boat-at-estimated-valuation-of-rs-2200-crore/articleshow/82103740.cms">reported</a> valuation was ₹2,200 crore (about $300million), has quickly risen to capture nearly 30% market share in the audio segment in India ⁠— its earphones, in particular, ⁠have been popular ⁠— and nearly a third of the smart watch segment, where it competes with the likes of Samsung and Apple. <div type="image" title="INTERVIEW: This Indian challenger to Apple and Samsung explains why it chose India and Vietnam to make a bulk of its products" msid="85894605" hostid="261"></div> boAt’s chief executive (CEO) Vivek Gambhir, in a conversation with Business Insider, highlighted that it is currently manufacturing about 15 of its products in India with the help of local partners. It aims to manufacture 30-40% of its production volume in the home market, by 2024. The target could have been achieved sooner if conditions in the Indian electronics manufacturing hub were slightly better. India currently has 20% manufacturing disability compared to China and 12% manufacturing disability versus Vietnam. A manufacturing disability is defined as the difference, in percentage, in the selling price of a product and the manufacturing price. This is why boAt chose Vietnam as its second market. By 2024, the company expects the Southeast Asian country to make up for 10% of its production. Together, India and Vietnam will manufacture around 50% of boAt’s products, while China will add another 50%. boAt is not the only one one taking notice of Vietnam. The country’s rise as a major manufacturing hub for international exports in the last decade can be described as meteoric. South Korea-based electronics giant Samsung has one of its largest facilities outside its home country in Vietnam. The company assembles half of its global handsets in Vietnam and has benefited after the US-China trade war. Apple too started producing its Airpods in Vietnam last year. <div type="image" title="INTERVIEW: This Indian challenger to Apple and Samsung explains why it chose India and Vietnam to make a bulk of its products" msid="85894626" hostid="261"></div> When global companies were looking to reduce their dependence on Chinese manufacturers, India, too, saw an opportunity to lure some of them. However, as Gambhir explained, the cost of manufacturing in India has to be more competitive than it is right now. He added that while Vietnam is a better strategic location for now, compared to India, they want to be a leader in the Make-in-India campaign over the next few years. Challenges ahead of boAt to makes its Make-in-India desire a success According to the Indian Electronic System Design and Manufacturing (ESDM) Disability Identification<a href="https://home.jeita.or.jp/iad/pdf/IESA/IESA-EY%20-%20Indian%20ESDM%20Disability%20Identification%20Report%20-%20Executive%20Summary.pdf"> Study</a>, the electronic products made in India could be less competitive anywhere between 7% and 26%, depending on the nature of the product. But cost is not the only factor. The recently unveiled production-linked incentives in India, along with the import duty hikes, will bring down costs, Purnendu Kumar, practice leader of consumer and retail at consultancy Praxis Global Alliance, told Business Insider. Even if the cost is brought down, the ecosystem is yet to mature. “We are working with about five plus local partners [in India], but there's a certain amount of, you know, hand holding required to be able to actually work with them and educate them in terms of our products getting manufactured,” he added. Therefore, Vietnam is higher up the ladder for boAt at the moment, especially due to “high quality manufacturing opportunities”. The free trade agreement between India and the Southeast Asian country is another boon that reduces imports and exports barriers among the two nations. As for boAt, India will continue to be its research and development (R&amp;D) hub. It has set up a R&amp;D centre in Bengaluru earlier this year, in addition to its existing R&amp;D unit. The company also hired 30 employees in both these labs during the pandemic. SEE ALSO <a href="https://www.businessinsider.in/stock-market/news/reliance-just-dial-mahindra-and-other-hot-stocks-to-watch-out-for-on-september-3/slidelist/85886767.cms">Reliance, Just Dial, Mahindra and other hot stocks to watch out for on September 3</a> <a href="https://www.businessinsider.in/tech/news/oneplus-buds-pro-review-india/articleshow/85887425.cms">OnePlus Buds Pro Review — Love bass? Your search ends here</a> <a href="https://www.businessinsider.in/stock-market/news/vijaya-diagnostic-ipo-last-day-for-subscription-allotment-on-september-8/articleshow/85879245.cms">Vijaya Diagnostic IPO’s last day to subscribe, grey market indicates ₹15-₹20 premium</a>

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Grey market premium shows Ami Organics may shine on listing while Vijaya Diagnostic may stutter

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Vijaya Diagnostic IPO ⁠— analysts say ‘subscribe’ but the grey market premium isn’t exciting

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Vijaya Diagnostic IPO sees tepid response on the second day of bidding

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IPO-bound Vijaya Diagnostic is planning more acquisitions in east India to expand business

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India’s mutual fund industry gets its hands on blockbuster IPOs like Paras Defence and others for ₹1500 crore in September

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INTERVIEW: This Indian challenger to Apple and Samsung explains why it chose India and Vietnam to make a bulk of its products

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