Thyrocare Technologies sees strong debut on bourses

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Shares of diagnostic chain operator Thyrocare Technologies were trading at Rs 623.35 at 10:54 on BSE, a premium of 39.76% over the initial public offer price of Rs 446.

The stock debuted at Rs 662, a premium of 48.43% to the initial public offer (IPO) price. So far the stock hit a high of Rs 665.40 and low of Rs 606. On BSE, 14.24 lakh shares were traded on the counter.

The IPO ended on 29 April 2016. It received bids for a total of 55.31 crore shares and it was subscribed 73.55 times. The company had priced the IPO at the top end of the Rs 420 to Rs 446 per share price band. The qualified institutional buyers (QIBs) category was subscribed 73.17 times. The non-institutional investors category was subscribed 225.03 times. The retail individual investors category was subscribed 8.72 times.

Thyrocare Technologies raised Rs 143.76 crore by selling 32.23 lakh shares to anchor investors ahead of the opening of the IPO. The shares were allotted to the anchor investors at Rs 446 per share, the top end of the Rs 420 to Rs 446 per share price band for the IPO. Anchor investors allotted shares of Thyrocare Technologies include Nomura Trust and Banking Company, DSP Blackrock Emerging Stars Fund, HDFC Trustee Company, Birla Sunlife Trustee Company, Reliance Capital Trustee Company, SBI Magnum Multiplier Fund, ICICI Prudential, Tata AIA Life Insurance Company, Copthall Mauritius Investment, Spring Healthcare India Trust, FIL Investments (Mauritius), L&T Mutual Fund, Sundaram Mutual Fund and DB International (Asia).

The IPO of Thyrocare Technologies through the book-building route opened for bidding on 27 April 2016. The bidding for the IPO concluded on 29 April 2016. The issue comprised of offer for sale of up to 1.07 crore equity shares by existing shareholders of the company. The company will not receive any funds from the IPO. Private equity investor Agalia Private Limited is selling 1.02 crore shares via the IPO. From the promoter group, A. Velumani HUF and A. Sundararaju HUF are selling 1.8 lakh shares each and Anand Velumani is selling 1.77 lakh shares.

Promoted by Dr. A. Velumani and A Sundararaju, Thyrocare Technologies is one of the leading pan-India diagnostic chain operators. It conducts an array of medical diagnostic tests and profiles of tests that center on early detection and management of disorders and diseases, including thyroid disorders, growth disorders, metabolism disorders, auto-immunity, diabetes, anemia, cardiovascular disorders, infertility and various infectious diseases. The company primarily operates its testing services through a fully automated Central Processing Laboratory (CPL). It has recently expanded its operations to include a network of Regional Processing Laboratories (RPLs).

The company has built a nation-wide network of authorized service providers that source samples for processing and testing by the RPLs and CPL. As of 29 February 2016, the company had a network of 1,041 authorized service providers, comprised of 687 Thyrocare Aggregators (TAGs) and 354 Thyrocare Service Providers (TSPs) spread across 466 cities, 24 states and one union territory. The company offers wellness and preventive tests under Aarogyam brand. The company also operates a network of molecular imaging centers in New Delhi, Navi Mumbai and Hyderabad focused on early and effective cancer monitoring. This business is carried through its wholly owned subsidiary NHL.

Based on the consolidated financial performance, Thyrocare Technologies reported net profit of Rs 40.02 crore on revenue from operations of Rs 175.91 crore for nine months ended 31 December 2015. Net profit stood at Rs 44.43 crore on revenue from operations of Rs 182.95 crore for the year ended 31 March 2015.