Shares of Suraksha Diagnostic are set to kick-off its innings at Dalal Street on Friday, December 06. The diagnostics and pathology solutions provider is likely to deliver a muted listing pop to investors on its debut, if one goes by the latest signals from the grey market, where its premium has been crawling higher.
Ahead of its debut, the grey market premium (GMP) for Suraksha Diagnostic shares stood at Rs 12-15, suggesting up to a 3 per cent gains for the investors on debut. However, the GMP in the unofficial market stood at merely Rs 2, when the issue was closed for bidding.
Suraksha Diagnostic sold its IPO in the price band of Rs 420-441 with a lot size of 34 shares. The issue was open for bidding between November 29 and December 03. The Kolkata-based company raised Rs 846.25 crore via IPO, which was entirely an offer-for-sale (OFS) of up to 1,91,89,330 equity shares by its promoters and existing shareholders.
Suraksha Diagnostic is set to list on the stock market. The IPO received modest interest and has the potential for a decent listing gain of 2-3%, said Shivani Nyati, Head of Wealth at Swastika Investmart. A cautious approach is advisable. Investors may find better opportunities among established players in the diagnostics sector, she said.
"Despite its presence in West Bengal and parts of the eastern region, the company's financial performance has been inconsistent, including a setback in FY23, though some recovery is evident recently. The IPO is a complete offer for sale, with no proceeds benefiting the business directly, and its valuation appears aggressive," Nyati added.
The issue of Suraksha Diagnostic was overall subscribed merely 1.27 times. The allocation for qualified institutional bidders (QIBs) was booked only 1.74 times, while the quota for non-institutional investors (NIIs) saw bids for just 1.41 times. The portion for retail investors went undersubscribed at only 95 per cent bids during the three-day bidding process.
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.
Brokerages had mixed views on the stock, with some suggesting to subscribe to it, while others suggesting to skip the issue. ICICI Securities, Nuvama Wealth Management and SBI Capital Markets were the book running lead managers of the Suraksha Diagnostic IPO, while Kfin Technologies served as the registrar for the issue.