Suraksha Diagnostic IPO opens today: Should you subscribe or avoid the issue?
Kolkata-based Suraksha Diagnostic is selling its IPO in the price band of Rs 420-441 per share with a lot size of 34 shares, which is open for bidding between November 29 and December 3.
- Nov 29, 2024,
- Updated Nov 29, 2024 10:57 AM IST
The initial public offering (IPO) of Suraksha Diagnostic opens for bidding on Friday November 29. The company is offering its shares in the price band of Rs 420-441 apiece, which can be subscribed for a minimum of 34 equity shares and its multiples thereafter. Investors can apply for the issue until Tuesday, December 3.
Incorporated in 2005, Suraksha Diagnostic offers pathology, radiology testing and medical consultancy services. The Kolkata-based company has a central reference laboratory with 8 satellite laboratories and 215 customer touchpoints, including 49 diagnostic centres and 166 sample collection centres as of June 30, 2024, across West Bengal, Bihar, Assam, and Meghalaya.
The Rs 846.25 crore IPO of Suraksha Diagnostic is entirely an offer-for-sale (OFS) of up to 1,91,89,330 equity shares by its promoters and existing shareholders. The company will not receive any proceeds from the issue and the selling shareholders will take off all the proceeds after deducting the issue expense.
Ahead of its IPO, Suraksha Diagnostic raised Rs 253.87 crore from 16 institutional investors as it allocated 57,56,797 equity shares at Rs 441 apiece. Its anchor book included Carnelian Bharat Amritkaal Fund, Societe Generale, Integrated Core Strategies (Asia), Troo Capital, Tusk Investments and mutual funds like Aditya Birla Sunlife, Bandhan, JM Financial, Kotak, Mirae Asset, Nippon and Quant MF.
Suraksha Diagnostic offers online and offline medical consultation services under one roof via 44 diagnostic centres, which house 120 polyclinics with more than 750 doctors. The operation of the diagnostic centres is supported by the technology platforms and systems that the company uses to streamline.
The company offers vaccination services and customized testing packages for disease prediction/early detection. The company uses digital pathology and artificial intelligence to generate blood tests. All radiology reporting is done through a digital platform that allows cases to be reported from all diagnostic centres, significantly reducing turnaround time.
The company has reserved 50 per cent of the shares for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of the equity shares reserved for them. Retail investors will get 35 per cent of the allocation in the issue.
For the quarter ended on June 30, 2024, Suraksha Diagnostic reported a net profit of Rs 7.67 crore with a revenue of Rs 61.85 crore. The company's bottomline stood at Rs 23.13 crore with a revenue of Rs 222.26 crore in the financial year ended on March 31, 2024.
ICICI Securities, Nuvama Wealth Management and SBI Capital Markets are the book running lead managers of the Suraksha Diagnostic IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Friday, December 6. Here's what analysts said for the IPO of Suraksha Diagnostic:
Suraksha Diagnostic has built a strong reputation in the diagnostic sector in Eastern India and is scaling up with new centers opening. Looking at all the factors, risks, opportunities and valuation, investors with a long term horizon and investors seeking exposure to the healthcare sector can invest in the issue, said Sushil Finance.
The initial public offering (IPO) of Suraksha Diagnostic opens for bidding on Friday November 29. The company is offering its shares in the price band of Rs 420-441 apiece, which can be subscribed for a minimum of 34 equity shares and its multiples thereafter. Investors can apply for the issue until Tuesday, December 3.
Incorporated in 2005, Suraksha Diagnostic offers pathology, radiology testing and medical consultancy services. The Kolkata-based company has a central reference laboratory with 8 satellite laboratories and 215 customer touchpoints, including 49 diagnostic centres and 166 sample collection centres as of June 30, 2024, across West Bengal, Bihar, Assam, and Meghalaya.
The Rs 846.25 crore IPO of Suraksha Diagnostic is entirely an offer-for-sale (OFS) of up to 1,91,89,330 equity shares by its promoters and existing shareholders. The company will not receive any proceeds from the issue and the selling shareholders will take off all the proceeds after deducting the issue expense.
Ahead of its IPO, Suraksha Diagnostic raised Rs 253.87 crore from 16 institutional investors as it allocated 57,56,797 equity shares at Rs 441 apiece. Its anchor book included Carnelian Bharat Amritkaal Fund, Societe Generale, Integrated Core Strategies (Asia), Troo Capital, Tusk Investments and mutual funds like Aditya Birla Sunlife, Bandhan, JM Financial, Kotak, Mirae Asset, Nippon and Quant MF.
Suraksha Diagnostic offers online and offline medical consultation services under one roof via 44 diagnostic centres, which house 120 polyclinics with more than 750 doctors. The operation of the diagnostic centres is supported by the technology platforms and systems that the company uses to streamline.
The company offers vaccination services and customized testing packages for disease prediction/early detection. The company uses digital pathology and artificial intelligence to generate blood tests. All radiology reporting is done through a digital platform that allows cases to be reported from all diagnostic centres, significantly reducing turnaround time.
The company has reserved 50 per cent of the shares for the qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will have 15 per cent of the equity shares reserved for them. Retail investors will get 35 per cent of the allocation in the issue.
For the quarter ended on June 30, 2024, Suraksha Diagnostic reported a net profit of Rs 7.67 crore with a revenue of Rs 61.85 crore. The company's bottomline stood at Rs 23.13 crore with a revenue of Rs 222.26 crore in the financial year ended on March 31, 2024.
ICICI Securities, Nuvama Wealth Management and SBI Capital Markets are the book running lead managers of the Suraksha Diagnostic IPO, while Kfin Technologies is the registrar for the issue. Shares of the company shall be listed on both BSE and NSE on Friday, December 6. Here's what analysts said for the IPO of Suraksha Diagnostic:
Suraksha Diagnostic has built a strong reputation in the diagnostic sector in Eastern India and is scaling up with new centers opening. Looking at all the factors, risks, opportunities and valuation, investors with a long term horizon and investors seeking exposure to the healthcare sector can invest in the issue, said Sushil Finance.