Krsnaa Diagnostic IPO allotment status and capital gain tax on selling shares in IPO allotment | Capital gain on IPO

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Incorporated in 2010, Krsnaa Diagnostics Ltd is one of the fastest-growing diagnostic chains in India. The company offers a wide range of diagnostic services such as imaging/radiology services (X-rays, MRI, etc.), routine clinical laboratory tests, pathology, and tele-radiology services to private and public hospitals, medical colleges, and community health centres.

The firm has an extensive network of diagnostic centres across India with a key focus on non-metro, and lower tier cities and towns. As of December 31, 2020, it operates 1,801 diagnostic centres that are offering radiology and pathology services across 13 different cities in India. In fiscal 2020, the business has served 5.27 million patients.

Company Financials:

Objects of the Issue:

The net proceed from the IPO will be utilized for the following purposes;

• To finance the cost of establishing diagnostics centres at Punjab, Karnataka, Himachal Pradesh, and Maharashtra.
• Repayment/pre-payment of firm’s borrowings fully or partially.
• General corporate purposes.

Krsnaa Diagnostics IPO Subscription Status (Bidding Detail)

The Krsnaa Diagnostics IPO is subscribed 64.38x times on Aug 6, 2021. The public issue subscribed 41.95x in the retail category, 49.83x in the QIB category, and 116.30x in the NII category.

The proposed listing date for IPO is 17.08.2021.

Check Allotment Status on Registrar’s Website

The registrar for this IPO is KFin Tech.

• Step 1: Visit the website kosmic.kfintech.com.
• Step 2: On the homepage, select IPO and application type.
• Step 3: Now type in your application number and security key. Click on submit.
• Step 4: Your share allotment status will be displayed on screen.

Check Allotment Status on BSE

Step 1: Investors are required to follow this link to check their IPO allotment status on BSE: https://www.bseindia.com/investors/appli_check.aspx.

Step 2: You will then have to select the ‘Equity’ option and then from the dropdown, select issue name – ‘Krsnaa Diagnostics Limited’

Step 3: You will have to enter your application number and PAN card number next.

Step 4: After completing all the above-mentioned steps click on the “Search” button.

Capital gain tax on sale of shares received in IPO allotment:

Now, let’s talk about the taxability of gain earned if the shares are sold on the listing date itself to get listing gain by way of premium on listing and if the same is sold after some time.

There can be two types of gain’s: (i) long term or (ii) short term.

Since the shares are going to be listed on stock exchange hence, if the shareholder sell such shares on the recognised stock exchange, such shares will be considered as long term asset if they are held for more than one year and will be considered as short term if they are held for a period less than 1 year.

The taxability of such shares will be calculated based on section “111A for short term gain” and “112A for long term gain” wherein tax rate of short term gain is 15% of the gain and for long term gain the tax rate is 10% of the gain amount.

Looking at the current scenario we know that many people sell their shares on the listing day itself to earn the listing premium and hence the gain earned by such transaction will be considered as short term capital gain as the assessee held shares for less than one year period and hence he/ she shall be liable to pay tax at the rate of 15% on such gain under section 111A of the Income tax Act.

However if the shareholder holds the share for more than one year from the date of listing as the specialty chemical sector is likely to see boom in next year then he or she shall be liable to pay tax at the rate of 10% on the gain amount under section 112A of the Income tax Act.

Further, for long term capital gain no tax needs to be paid on the initial Rs. 1 lakh gain u/s 112A of the Income tax Act and no benefit of indexation will be available in case of long term gain since the shares are listed and sold on recognized stock exchange.

In case of long term capital gain one can claim exemption u/s 54F by investing the entire sale consideration in a new residential house and if the conditions mentioned under section 54F are fulfilled, other than section 54F there are no other way to save capital gain tax.

Also, the tax rates mentioned above are just base rates and surcharge and cess will also be added accordingly on such tax rates.

You can book phone consultation/ assistance online with expert as mentioned below:

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