The price range for the IPO was Rs 420-446 a share. At the top end of the band, the IPO was worth Rs 480 crore.
Dr Lal PathLabs, also a medical diagnostic company, had seen huge demand for its IPO in December 2015. That IPO and then the listing performance had a good rub-off effect on Thyrocare, said Deven Choksey, managing director of the KR Choksey group.
The Thyrocare IPO was managed by JM Financial Institutional Securities, Edelweiss Financial Services and ICICI Securities.
In terms of sale, Thyrocare is the fourth-largest diagnostic chain in the country. The company conducts an array of medical diagnostic tests and profiles of tests that center on early detection and management of disorders and diseases. Through a subsidiary, the company also operates a network of molecular imaging centres.
Thyrocare has clocked revenue and operating profit growth of 20-25 per cent annually in recent years. It has margins of around 40 per cent, compared with Dr Lal and SRL’s 25-30 per cent margin. Analysts peg the valuations at four to five times the enterprise value to sales for FY17 and FY18, lower than that of Dr Lal PathLabs which is quoting at 7-8.5 times of the next two financial years.
In recent months, several health care entities, including Alkem Laboratories, Dr Lal PathLabs and Narayana Hrudayalaya have come out with IPOs. Most of them have seen a good performance after listing.