Krsnaa Diagnostics rises 6% in trade; what's driving investor interest?

Krsnaa Diagnostics share price rose 6 per cent in trade, logging an intraday high at ₹789.1 per share; here's why

Krsnaa Diagnostics shares gained 6 per cent in trade on Tuesday, logging an intraday high at ₹789.1 per share. At 10:40 AM, Krsnaa Diagnostics shares were trading 3.11 per cent higher at ₹763 per share on the BSE. In comparison, the BSE Sensex was up 0.01 per cent at 83,447.28.

 

The company's market capitalisation stood at ₹ 1,041.8 crore. Its 52-week high was at ₹628 per share.  READ STOCK MARKET UPDATES TODAY LIVE

Why were Krsnaa Diagnostics shares in demand?

The northward movement in the stock came after the High Court of Rajasthan passed an order in the favour of Krsnaa Diagnostics and its consortium partner, Telecommunications Consultants India. The order was regarding the Letter of Acceptance (LoA) issued by the National Health Mission, Rajasthan for providing laboratory services under the Free Diagnostics Initiative on HUB and SPOKE Model under NHM across the state of Rajasthan.

 

Further, according to the company's exchange filing, the Government of Rajasthan has issued a new LoA which has been received by the company and the consortium. 

 

In July 2023, the National Health Mission, Rajasthan cancelled the LoA for providing laboratory services in the state under a free diagnostics initiative on the hub and spoke model.

 

Citing the reason the company said that as part of the tender requirements, there were requirements of provision of submitting additional performance security. There were disagreements over providing this additional performance security due to certain technicalities.   ALSO READ | Siemens Energy gains 3%, hits new high on healthy March quarter results 

"Whilst we have made various representations to the authorities on the same as well as communicated our willingness and commitment to execute the agreement. However, to our disappointment, the authorities decided to cancel the letter of acceptance," the filing said. 

 

The company, further, said in collaboration with Telecommunications Consultants India, it has taken legal recourse and legal counsels are actively pursuing this matter with utmost dedication and diligence.

 

In May 2023, the company accepted the LoA issued as lead bidder.

 

Krsnaa Diagnostics is India’s fastest growing differentiated diagnostic services provider both in Radiology and Pathology.