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PremiumSuraksha Diagnostic IPO Day 3 Live Updates: Suraksha Diagnostic's share sale saw a 25% subscription on the second day of the offering on Monday. Notably, the portion allocated for retail individual investors experienced a strong response, with a subscription rate of 45%. The quota reserved for non-institutional investors was subscribed 13%.
The initial public offering (IPO) of Suraksha Diagnostic Ltd was 11% subscribed on the first day of the share sale, which took place on Friday. The portion allocated to Retail Individual Investors (RIIs) was 20% subscribed, while non-institutional investors received a subscription of 4%, according to data from the Bombay Stock Exchange (BSE).
On December 2, the public issue was booked 25% as investors bid for 34,00,068 or 34 lakh shares, compared to the 1,34,32,533 or 1.34 crore shares on offer. Retail investors booked 45 per cent of the shares on offer in their segment. The Non-Institutional Investors (NII) subscribed 13 per cent of their segment. However, the Qualified Institutional Buyers (QIB) section was left unsubscribed on the second day.
On Thursday, Suraksha Diagnostic Ltd, an integrated diagnostic chain, announced that it has raised ₹254 crore from anchor investors.
The initial share sale, valued at ₹846 crore, will close on December 3. Shares are priced between ₹420 and ₹441 each.
The Kolkata-based company's IPO includes an Offer for Sale (OFS) of 19,189,330 equity shares, worth ₹846.25 crore at the upper end of the price range. This sale will be conducted by promoters and investor shareholders, with no new shares being issued.
Suraksha Diagnostic provides a comprehensive solution for pathology and radiology testing, as well as medical consultation services. This is facilitated through a broad operational network that includes a central reference laboratory, eight satellite laboratories, and 194 customer touchpoints. These touchpoints consist of 48 diagnostic centers and 146 sample collection centers, primarily operated as franchises, across West Bengal, Bihar, Assam, and Meghalaya, as of March 31, 2024.
Suraksha Diagnostic IPO Day 3 Live Updates: Suraksha Diagnostic's public issue was subscribed 1.27 times on the final day of bidding. Qualified Institutional Buyers (QIBs) led the subscription, followed by Non-Institutional Investors (NIIs) and retail investors.
Suraksha Diagnostic IPO Day 3 Live Updates: The retail investor segment bidding for the Suraksha Diagnostics IPO has picked up pace at the final leg of subscription on Day 3.
Segment subscribed 92% so far, as of 4:54 p.m.
Suraksha Diagnostic IPO Day 3 Live Updates: The Suraksha Diagnostic IPO subscription has hit 1.26 times the shares available as of 4:51 p.m.
The Qualified Institutional Buyers (QIBs) segment is leading the scoreboard, coming in at 1.74 times subscriptions compared to the shares on offer.
Suraksha Diagnostic IPO Day 3 Live Updates: The Suraksha Diagnostic IPO has received 1.19 times subscription so far, as of 3:48 p.m. on the final day of bidding.
Qualified Institutional Buyers (QIBs) lead the final day of bidding by subscribing over 1.7 times. The Non Institutional Investors (NIIs) segment has also been fully book, but the retail bidders section is subscribed 83% of the shares available.
“Considering the FY 24 EPS of ₹6.19 on a post-issue basis, company is set to list at a P/E of approximately ~24x with a market cap of ₹2,594.84 cr whereas its peers EMS Ltd, ION Exchange Ltd, Va Tech Wabag Ltd and Vishnu Prakash R Punglia ltd are trading at P/E ratio of approximately ~25x, ~44x, ~41x and ~28x respectively. We assign “Subscribe" rating to this IPO as the company has in house designing, engineering and execution team, diversified Order Book of projects across India. Also, it is available at reasonable valuation as compared to its peer," said Marwadi Shares and Finance Ltd.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 1.00 times on the third day of subscription today, at 14:57 IST, as per BSE data.
The initial share sale received bid for 1,34,01,032 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 75% subscription while the quota for non-institutional investors got subscribed 87%. The qualified institutional buyers (QIBs) part is booked 1.52 times.
Suraksha Diagnostic Limited IPO price band has been fixed in the range of ₹420 to ₹441 per equity share of the face value of ₹2. The floor price and the cap price are 210 times and 220.5 times the face value of the equity shares. The Suraksha Diagnostic IPO lot size is 34 equity shares and in multiples of 34 equity shares thereafter.
The Company is led by a team of experienced professionals with skill sets that are complementary and, they believe, requisite for the fast-growing Indian diagnostic market. Members of their management team have experience in the healthcare industry, and, under their leadership over the last several years, they have grown rapidly and increased both the productivity and efficiency of their network.
Their Board of Directors includes a combination of management executives and experts from healthcare industry. The combination of their experienced Board of Directors and their dynamic management team positions them well to capitalize on future growth opportunities.
ICICI Securities Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd are the book-running lead managers for the Suraksha Clinic and Diagnostic IPO. Kfin Technologies Ltd serves as the registrar for this issue.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 61% on the third day of subscription today, at 13:51 IST, as per BSE data.
The initial share sale received bid for 81,40,110 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 69% subscription while the quota for non-institutional investors got subscribed 57%. The qualified institutional buyers (QIBs) part is booked 49%.
The IPO is entirely an Offer for Sale (OFS), consisting of the sale of up to 19,189,330 equity shares by the selling shareholders. Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma are among the promoter selling shareholders. Additionally, OrbiMed Asia II Mauritius Limited, Munna Lal Kejriwal, and Santosh Kumar Kejriwal are among the investor selling shareholders. Since this IPO is an OFS, all proceeds will go directly to the selling shareholders.
Brokerage house, Canara Bank Securities highlights the below reasons-
• Standalone diagnostic centers are facing significant challenges, such as intense competition from organized diagnostic chains and difficulty scaling operations.
• One of the primary barriers for standalone players is the capital expenditure required for investment in advanced technologies and equipment, such as complex radiology and pathology services.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 52% on the third day of subscription today, at 12:30 IST, as per BSE data.
The initial share sale received bid for 69,32,566 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 63% subscription while the quota for non-institutional investors got subscribed 39%. The qualified institutional buyers (QIBs) part is booked 41%.
According to Ventura Securities report, between FY17 and FY24, the diagnostics sector experienced a CAGR of 9-10%. The growth was fueled by a combination of factors, such as the rising prevalence of non-communicable diseases (NCDs), increasing urbanization, expanding access to healthcare, and growing disposable incomes, which led to greater healthcare spending and a larger demand for diagnostic services. The increase in the frequency of complex diagnostic tests also contributed to market expansion.
The Indian diagnostics industry is forecast to grow at a CAGR of 10-12% between FY24 and FY28, expanding the market size to approximately ₹1,275-1,375 billion. This growth will be driven by several factors, including rising literacy rates, increasing disposable income, greater awareness of healthcare, urbanization, and an aging population, all of which are contributing to a higher demand for quality healthcare services, including diagnostics.
1. To achieve the benefits of listing the Equity Shares on the Stock Exchanges
2. To carry out the Offer for Sale of up to 19,189,330 Equity Shares of face value of ₹ 2 each by the Selling Shareholder. The company will not receive any proceeds from Offer for sale.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 34% on the third day of subscription today, at 11:03 IST, as per BSE data.
The initial share sale received bid for 45,54,572 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 57% subscription while the quota for non-institutional investors got subscribed 25%. The qualified institutional buyers (QIBs) part is yet to be booked.
The company has seen impressive performance in Fiscal 2024, with 93.83% of its revenue from operations coming from the B2C segment. This highlights the critical role of brand recognition, reputation, and brand image in attracting individual patients. As a result, the company must remain vigilant, as any misstep in diagnosis or treatment could lead to negative publicity. Such incidents not only threaten the company’s credibility but could also significantly impact their revenue from operations. Maintaining high standards of care and fostering trust with patients is vital to sustaining their success.
According to the Red Herring Prospectus (RHP), the diagnostics industry in India is highly competitive. The company's inability to effectively compete with other healthcare service providers may negatively impact our business, operational results, and financial condition. Additionally, as of the financial year 2024, the company's market share in its primary market, East India, is between 1.15% and 1.30%.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 28% on the third day of subscription today, at 10:06 IST, as per BSE data.
The initial share sale received bid for 37,77,740 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 50% subscription while the quota for non-institutional investors got subscribed 16%. The qualified institutional buyers (QIBs) part is yet to be booked.
The financial performance of the company has shown significant fluctuations during the period from FY22 to FY24, with revenues experiencing volatility. However, a notable recovery was observed in FY24 and the first quarter of FY25, with revenue reaching approximately ₹60.73 Cr.
During FY22 to FY24, the compounded annual growth rate (CAGR) for profit after tax (PAT) was reported at 5.38%. In FY24, the company achieved an EBITDA margin of 33.66% and a PAT margin of 10.57%. This trend improved further in Q1FY25, where the EBITDA margin stood at 35.77%, while the PAT margin increased to 12.62%, as noted by Sushil Financial Services.
As per red herring prospectus (RHP), the company's listed peers are Dr Lal PathLabs (with a P/E of 77.08), Metropolis Healthcare (with a P/E of 89.61), Thyrocare (with a P/E of 65.52), and Vijaya Diagnostic (with a P/E of 86.40).
Tentatively, Suraksha Diagnostic IPO basis of allotment of shares will be finalised on Wednesday, December 4, and the company will initiate refunds on Thursday, December 5, while the shares will be credited to the demat account of allottees on the same day following refund. Suraksha Diagnostic share price is likely to be listed on BSE and NSE on Friday, December 6.
Suraksha Diagnostic IPO has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.
The firm raised ₹254 crore from anchor investors one day before the launch of its initial public offering (IPO) for public subscription.
The leading anchor investors in the IPO included Nippon India Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, Quant Mutual Fund, and Carnelian Bharat Amritkaal Fund, as stated in a circular posted on the BSE's website.
The company has allocated 57.57 lakh equity shares to 16 funds at ₹441 each, which is also the upper limit of the price band. This brings the total transaction size to ₹254 crore, according to the circular.
Suraksha Diagnostic IPO GMP today was ₹0, which meant shares were trading at their issue price of ₹441 with no premium or discount in the grey market according to investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Suraksha Diagnostic IPO Day 2 Live Updates: On the second day of the IPO, the public issue was booked 25% as investors bid for 34,00,068 or 34 lakh shares, compared to the 1,34,32,533 or 1.34 crore shares on offer.
Retail investors led the second bidding day, coming in at 45 per cent of the shares on offer.
The Non-Institutional Investors (NIIs) followed the retail bidders and subscribed to the IPO 13 per cent, compared to the shares available.
The Qualified Institutional Buyers (QIB) segment remained unsubscribed from foreign investors, domestic financial institutions and mutual funds, according to the data collected from BSE.
Suraksha Diagnostic IPO Day 2 Live Updates: Retail investors are leading among the three IPO segments, at 44% subscription for the shares on offer.
The segment has received a subscription of 29,73,538 or 29.73 lakh shares, compared to the 67,16,266 or 67.16 lakh shares on offer.
Suraksha Diagnostic IPO Day 2 Live Updates: The Suraksha Diagnostic IPO has been subscribed 25% on the second day of subscription today, at 4:18 p.m. (IST), as per BSE data.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 24% on the second day of subscription today, at 15:33 IST, as per BSE data.
The initial share sale received bid for 31,57,444 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 42% subscription while the quota for non-institutional investors got subscribed 11%. The qualified institutional buyers (QIBs) part is yet to be booked.
The company believes their dominant position and scale of operations have translated to their track record of profitability and financial performance. On account of their consistent financial performance, they believe they have a fairly unleveraged balance sheet as evidenced by their net debt to equity ratio. The company reported a CAGR in profit after tax and EBITDA of 5.38% and 6.22% between fiscals 2022 and fiscals 2024.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 23% on the second day of subscription today, at 14:57 IST, as per BSE data.
The initial share sale received bid for 30,64,658 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 41% subscription while the quota for non-institutional investors got subscribed 10%. The qualified institutional buyers (QIBs) part is yet to be booked.
“Based on the company’s financials for FY24, P/E stands at 99x, the IPO appears fully priced, factoring in the near-term positive developments. While the company has promising growth potential in a rapidly expanding sector, its high valuation could pose risks in the short term. Clients with high risk-taking appetite may SUBSCRIBE to the issue for long term gains," said Canara Bank Securities.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 22% on the second day of subscription today, at 13:48 IST, as per BSE data.
The initial share sale received bid for 28,87,450 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 39% subscription while the quota for non-institutional investors got subscribed 10%. The qualified institutional buyers (QIBs) part is yet to be booked.
Established in 2005, Suraksha Disgnostic Ltd. offers a comprehensive suite of diagnostic services, including pathology, radiology, and medical consultations with a stronghold in eastern and northeastern India, the company has central reference laboratory, 8 satellite laboratories, 215 customer touchpoints, including 49 diagnostic centres and 166 sample collection centres.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 20% on the second day of subscription today, at 12:48 IST, as per BSE data.
The initial share sale received bid for 26,77,296 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 36% subscription while the quota for non-institutional investors got subscribed 9%. The qualified institutional buyers (QIBs) part is yet to be booked.
In FY2024, the company held a market share of 1.15% to 1.30% in the diagnostics services market in Eastern India, which is lower than peers such as Dr. Lal Pathlabs (5.30% to 5.70% in North India) and Vijaya Diagnostic Centre (2.20% to 2.50% in South India). This positioning reflects the company's growth potential in an under-penetrated market
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 long term horizon and investors seeking exposure to healthcare sector can invest to the issue.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 18% on the second day of subscription today, at 11:18 IST, as per BSE data.
The initial share sale received bid for 23,96,082 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 32% subscription while the quota for non-institutional investors got subscribed 8%. The qualified institutional buyers (QIBs) part is yet to be booked.
According to JM Financial's report, the financials of the Company’s subsidiaries have been consolidated in the Restated Consolidated Financial Information. This includes three subsidiaries that reported losses in fiscal 2024: Suraksha Salvia LLP, which incurred a loss of ₹10.70 million; Asian Institute of Immunology and Rheumatology LLP, with a loss of ₹1.32 million; and Suraksha Radiology Private Ltd, which lost ₹0.70 million. Any adverse financial performance of these subsidiaries will negatively impact the Company’s business, financial condition, results of operations, and future prospects.
As of June 30, 2024, the company operated a total of 49 diagnostic centers. This included 13 hub centers and 36 'spoke' diagnostic centers, comprised of 11 medium-sized centers, 23 small centers, and 2 centers operating under a public-private partnership (PPP) model.
The initial public offer of Suraksha Diagnostic IPO has been subscribed 14% on the second day of subscription today, at 10:09 IST, as per BSE data.
The initial share sale received bid for 18,54,938 shares against 1,34,32,533 shares on offer, according to BSE.
The portion for retail investors received 25% subscription while the quota for non-institutional investors got subscribed 7%. The qualified institutional buyers (QIBs) part is yet to be booked.
1. Increase the number and scale of projects through prequalification.
2. Expand our geographical reach.
3. Develop plans to bid for Hybrid Annuity Model (HAM) projects.
4. Introduce new initiatives focused on "Waste to Energy" within our projects.
5. Take advantage of government policy initiatives in the Wastewater Treatment Plant (WWTP) and Water Supply and Sanitation Projects (WSSP) sectors.
“We assign “Subscribe" rating to this IPO as the company has in house designing, engineering and execution team, diversified Order Book of projects across India. Also, it is available at reasonable valuation as compared to its peer," the brokerage said.
Suraksha Diagnostic IPO GMP today was ₹0, which meant shares were trading at their issue price of ₹441 with no premium or discount in the grey market according to investorgain.com.
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
