Dr.Lal PathLabs Limited (DLPL) IPO Review

Issue Highlights

Issue Period	8/12/15-10/12/15
Price Band	Rs. 540-550
Issue Size(Equity Shares)	1,16,00,000
Issue Size (Rs. crore)	626-638
Issue Type	100% Book built
Face Value (Rs.)	10
Listing	BSE,NSE
Industry	Diagnostic Healthcare Service
Registrar	Link Intime India Pvt. Ltd.
Minimum Bid Quantity	20
Maximum Retail Subscription	Rs. 1,98,000 (18 lots)
BRLM	Kotak Investment banking, City Group Global India Pvt. Ltd.
Retail discount	Rs. 15 per share

Issue Details

Offer for Sale:

Promoters’ stake sell: 41,07,355 equity shares

Non-promoter stake sell: 7492645 equity shares

Total offer for sale: 1,16,00,000 equity shares

Fresh Issue: Nil

Equity Shares Outstanding Prior to the Issue: 8,22,69,877 equity shares

Equity Shares Outstanding after the Issue: 8,22,69,877 equity shares

Objects of the Issue

This issue being a pure offer for Sale, no proceeds of the issue shall go towards the company.

Except the listing fees all issue related expense shall be borne by the selling stake holders on proportionate basis.

Company Profile

The company offers diagnostic and related health care tests and services in India through its integrated nationwide network. Its customers are mainly individual patients, hospitals and other healthcare provider and corporate. Dr.Lal Pathlab offers over 3,368 diagnostic and healthcare tests.

The company operates on a ‘hub and spoke’ network model and with a national reference laboratory in New Delhi , 163 other clinical laboratories,1340 patient service centers and over 5,000 pickup points.

Risks & Threats

(1) Diagnostic healthcare industry is highly competitive with competitors like Thyrocare, SRL Diagnostics and Metropolis

(2) Business activities are mainly concentrated in northern and eastern India with 85 % of the total revenue generation coming from these regions

(3) Key source of income is individual patients and Indian health insurance sector not being developed; company’s revenue may vary due to a variety of factors like disposable income etc.

(4) The revenue volumes are impacted by seasons with Monsoon season being top grosser and winter months being slack season

Financial Profile #

Parameter	FY 15
PEG (Profit, trailing 4 years)	1.6
Net Profit Margin (%)	13.74
Return on Capital Employed (%)	45.5
Return on Equity (%)	32.9
Total Liability to Net worth	.4
Price to Book Value	14.2
Operating Cash to Net Profit	1.6
TIE (Times Interest Earned)	394.8
AR collection Period (Days)	16.8
EV/EBITDA	29.2
M-Cap to Sales	7.1
Current Ratio	2.5
Profit CAGR (%)	32.6

# using upper end of the price-band

Inference

The business model of the company is robust and scalable with the ‘hub and spoke business’ network model. The valuations are though stretched in terms of PEG and EV-to-EBITDA but an awesome profit CAGR of 32 % justifies the premium being charged.

Though presently DLPL’s revenue is mainly attributed to northern and eastern India but its cash-rich business model is favorable for venturing into unexplored areas.

In future more players are supposed to enter in the diagnostic business adding up more competition but rising health awareness coupled with the growing health-insurance penetration shall augur well for this industry.

A discount of Rs. 15 for retail investors makes it an intriguing one.

Team Work - Meaning and Tips for better Team Work

A single brain is not always capable of making key decisions on its own. To come up with an efficient solution, an individual requires the help and advice of others. A team is established when individuals get together on a common platform with the common goal of completing a task. To guarantee optimum compatibility, team members should ideally come from similar backgrounds and have a single aim. To provide their best, the team members must complement each other and function as a single unit in tight cooperation. "There is no I in Team Work," as the saying goes, and each member must put the needs of his team first. Personal interests must take a second seat. Any team's performance is directly proportionate to the relationship between its members and their combined efforts. What is the definition of teamwork? Teamwork is defined as the sum of each team member's efforts toward the fulfilment of the team's goal. In other words, any team's backbone is its ability t

Scientists discover a new theory / The fundamental property of light – 150 years after Maxwell

Light plays a vital role in our everyday lives and technologies based on light are all around us. So we might expect that our understanding of light is pretty settled. But scientists have just uncovered a new fundamental property of light that gives new insight into the 150-year-old classical theory of electromagnetism and which could lead to applications manipulating light at the nanoscale. It is unusual for a pure-theory physics paper to make it into the journal Science. So when one does, it’s worth a closer look. In the new study, researchers bring together one of physics' most venerable set of equations – those of James Clerk’s Maxwell’s famous theory of light – with one of the hot topics in modern solid-state physics: the quantum spin Hall effect and topological insulators . To understand what the fuss is about, let’s first consider the behaviour of electrons in the quantum spin Hall effect. Electrons possess an intrinsic spin as if they were tiny spinning-tops,

19 Types Of Content Writing Services For Your Business

It’s hard to know which type of content writing service is the best for your business. There are so many different types of content writing services out there that it’s easy to get confused. You end up wondering if you’re choosing the right one for you. In this post, we’ll get rid of this confusion, once and for all. I’m going to list out the different kinds of writing services you could use. By the end of this article, you’ll know whether you need a copywriter, a content writer, or a social media marketer and how they can help you achieve your business goals. This post is also useful for writers who want to hone their writing skills in a specific area. Let’s dive in and learn what types of content writing services exist and when you should use them. (Bonus – if you want to hire the top 1% of writers, go to the bottom to learn how). Types of Content Writing Services As we go through the list of content writing services, you will find that many of them overlap. That’s perfectly

The LimitlessX - Get Tech Science News around the Globe

Search This Blog