The Initial Public Offering (IPO) of Thyrocare Technologies Ltd. through an offer for sale of up to 10,744,708 Equity Shares by the Selling Shareholders at a price band of Rs. 420 to Rs. 446 through 100% book-building process will open for subscription on April 27, 2016. The IPO will close on April 29, 2016.
The lot size is 33 equity shares and face value is Rs. 10 per share. The issue size at the upper price band will be approximately Rs. 480 crores. Out of which, 50% or Rs. 240 crores is reserved for QIBs (Qualified Institutional Buyers), 15% of Rs. 72 crores is reserved for Non-Institutional Investors and 35% or Rs. 168 crores is reserved for retail individual investors.
Thyrocare is one of the leading pan-India diagnostic chains and conducts an array of medical diagnostic tests and profiles of tests that center on early detection and management of disorders and diseases. Established on 28 January 2000 in Mumbai by scientist turned entrepreneur A Velumani, Thyrocare is now a popular name.
As of February 2016, the company offered 198 tests and 59 profiles of tests to detect a number of disorders. Its profiles of tests include 16 profiles of tests administered under the “Aarogyam” brand, which offers patients a suite of wellness and preventive health care tests.
According to the latest count as of nine months ended December 2015, Thyrocare performed 159,350 tests daily through its network that comprises presence in more than 2,000 cities and towns in India and internationally. Through its wholly owned subsidiary, Nueclear Healthcare Limited, Thyrocare operates a network of molecular imaging centers in New Delhi, Navi Mumbai and Hyderabad, focused on early and effective cancer monitoring.
With a belief that 'Quality' is the heart of any intelligent management, Thyrocare became one of the first Indian diagnostic laboratories to get international accreditations like ISO 9001-2000 rating as early as 2001, which is now escalated to ISO 9001:2008; NABL (National Accreditation Board for Testing and Calibration Laboratories) in 2005 and CAP (College of American Pathologists) certification in 2007. The company has achieved its business advantage due to volumes and speed with accuracy.
The objective of the issue is to achieve the benefits of Listing on BSE & NSE.
The strategy of the company is to further grow the business by expanding network of regional processing laboratories (RPL) to cater to a larger number of cities across the country.
Looking at the financials the EPS of Rs. 9 for the year 2016(annualized), the company is asking for the P/E of around 50, which is fairly attractive for the high growth company like Thyrocare Technology (CAGR 23%).