Suraksha Diagnostic provides a range of services, including pathology, radiology, and medical consultancy. Over 90% of its revenue is derived from operations in West Bengal. The IPO is managed by ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets as book-running lead managers, with KFin Technologies serving as the registrar for the issue.
Suraksha Diagnostic IPO 2024: Key Highlights
The Suraksha Diagnostic IPO, a significant event in the healthcare and diagnostics sector, opened for public subscription on November 29, 2024, and will close on December 3, 2024. Here are the key details about the IPO:
Price Band and Lot Size
- Price Band: ₹420 to ₹441 per share.
- Minimum Investment: Retail investors can apply for a minimum lot of 34 shares, costing ₹14,994 at the upper price band.
- Maximum Retail Investment: Up to 13 lots, amounting to ₹1,94,922.
Offer Details
- IPO Size: The total offer is 19.19 million shares, raising up to ₹846.25 crore.
- Nature of the Issue: This is an Offer for Sale (OFS), meaning no fresh equity is issued, and the proceeds will go to existing shareholders.
Timeline
- Allotment Date: December 4, 2024.
- Refunds: Initiation starts on December 5, 2024.
- Listing Date: Shares will be listed on the BSE and NSE on December 6, 2024.
Grey Market Premium (GMP)
- As of now, the IPO’s GMP is reported at ₹0, indicating muted investor sentiment.
Strengths and Risks
- Strengths:
- A strong presence in eastern and northeastern India.
- Integrated diagnostic services covering pathology and radiology.
- Technologically advanced infrastructurs.
- Risks:
- High dependence on West Bengal for revenue (95.48% in FY24).
- Valuation concerns with a Price-to-Earnings (P/E) ratio of 99.54x, higher than industry peers.
Investment Insights
Market analysts are cautious about the IPO due to its premium valuation and regional concentration. Retail investors should carefully consider these factors alongside the company’s growth potential and competitive landscape.
Suraksha Diagnostics IPO Subscription Status
On its opening day, the Suraksha Diagnostics initial public offering recorded an overall subscription of 11%. The segment allocated for Qualified Institutional Buyers (QIBs) remained unsubscribed, while the Non-Institutional Investors (NIIs) category saw a subscription of 0.04%. The Retail Investors category was subscribed by 2%. According to data from the BSE, the IPO received 14,62,612 share applications against the total offering of 1,34,32,533 shares on Friday.
