Vijaya Diagnostic IPO: Why brokerages suggest subscribing to the issue

The diagnostic market in Telangana and Andhra Pradesh, Vijaya's strong base, is projected to grow to Rs 12,000 - 13,000 crore by FY13, reports suggest

Vijaya Diagnostic is the largest integrated diagnostic chain in southern India, offering pathology and radiology testing services mostly in Telangana and Andhra Pradesh.

The company's initial public offer (IPO) opened for subscription on Wednesday, September 01, and the issue is priced between Rs 522-531 per equity share (1 lot of 28 equity shares). The objective of the IPO, according to the company, is to enhance its visibility and brand image, provide liquidity to shareholders and a public market for the shares.

At the upper end of the price band, the company aims to raise Rs 1,895.03 crore. The offer, which closes on