Agilus Diagnostics IPO

About Agilus Diagnostics Ltd IPO

The IPO of Agilus Diagnostics Ltd is a 100% book-built offer that comprises only an offer for sale. It has no fresh issue. The offer for sale is up to 14,233,964 equity shares.

Objectives of Agilus Diagnostics Ltd IPO

The selling shareholders will be entitled to the entire proceeds of the offer after deducting the offer expenses and relevant taxes. The company will not receive any proceeds from the offer. The objects of the offer are to:

• Achieve the benefits of listing the equity shares on the stock exchanges.

• Carry out the offer for sale of up to 14,233,964 equity shares by the selling shareholders namely International Finance Corporation, NYLIM Jacob Ballas India Fund III LLC and Resurgence PE Investments Ltd to meet the obligations to provide an exit to such selling shareholders by the company and its promoter under the 2012 Shareholders’ Agreement read with the Amendment agreement.

Industry Outlook

The diagnostics industry is poised for substantial growth between Fiscals 2023 and 2028. The overall industry is expected to reach a market size of ₹1150-1250 billion, logging a CAGR of 8-10%. Several factors contribute to this outlook.

Firstly, growth is supported by rising literacy rates and disposable income among the population, leading to increased awareness and demand for quality healthcare services, including diagnostics. Further, a rise in urbanisation, coupled with, that in lifestyle-related diseases and ageing population, will create a greater need for accurate and timely diagnostics to identify and manage health issues effectively.

Company Information

Agilus Diagnostics Ltd is the largest diagnostics service provider in terms of number of laboratories and the second largest in terms of revenue from operations in India as of and for the financial year ended March 31, 2023. As of March 31, 2023, the company had a network of 413 laboratories out of which 43 laboratories were accredited by National Accreditation Board for Testing and Calibration Laboratories (NABL).

It offers diagnostics testing services (routine and specialised tests), wellness and preventive care packages, hospital laboratory management services and clinical research trial testing services.

Risks of Agilus Diagnostics Ltd IPO

• The company is subject to various operational, reputational, medical and legal claims, regulatory actions or other liabilities arising from the provision of healthcare services and may be subject to liabilities arising from claims of malpractice and medical negligence which could adversely affect its business, results of operations and financial condition.

• The industry in which Agilus operates is highly regulated and requires it to obtain, renew and maintain statutory and regulatory permits, accreditations, licenses and comply with applicable safety, health, environmental, labour and other governmental regulations. Any regulatory changes or violations of such rules and regulations may adversely affect its business, results of operations and financial condition.

• Any interruption at its laboratories including its global reference laboratory (GRL) and regional reference laboratories (RRLs), customer touch points (CTPs) and pick-up points may affect its ability to process diagnostics tests, which in turn may adversely affect its business, results of operations and financial condition.

IPO Registrar and Book Running Lead Managers

KFin Technologies Ltd is the registrar of Agilus Diagnostics Ltd IPO. The book running lead managers are:

• ICICI Securities Limited
• Axis Capital Limited
• Citigroup Global Markets India Private Ltd

Business Model

Agilus Diagnostics Ltd offers a comprehensive range of over 3,600 routine and specialised diagnostics tests as well as wellness packages that cover an extensive range of specialties. Its wellness centres are dedicated towards providing holistic and comprehensive preventive healthcare and wellness services to its customers, while its Centres of Excellence (CoEs) are focused on histopathology, transplantation immunology and molecular pathology.

Company Growth Trajectory

The company’s revenue from operations stood at ₹1347.462 crore in FY 23, up from ₹1035.073 crore in FY 21. Its EBITDA in FY 23 stood at ₹262.626 crore as against ₹244.204 crore in FY 21.

Market Position

India’s largest diagnostics service provider in terms of number of laboratories and the second largest in terms of revenue from operations as of 31st March 2023, Agilus Diagnostics Ltd has built an extensive diagnostics network spread across 25 states and five union territories in India (covering over 1,000 towns and cities and over 532 districts in India), operating on a hub-and spoke model.

The company also has an international presence across the Middle East, Sub-Saharan Africa, Commonwealth of Independent States and the South Asian Association for Regional Cooperation (SAARC) region.

How to Check Allotment Status of Agilus Diagnostics Ltd IPO?

You can check the allotment status of this IPO through the BSE website or through its registrar portal. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt
• Select the Issue Name from the drop-down.
• Enter your application number or PAN number
• Check the box that says “I’m not a Robot” and click on “Search” to know the allotment status

To find out the allotment status from the registrar’s website:

• Visit the website of KFin Technologies Ltd
• Choose IPO allotment status from “Products’ dropdown
• Click on any of the links
• Select the IPO
• Input either your application number, PAN number or Demat number
• Enter captcha and click on Submit