Suraksha Diagnostics IPO day 2: GMP, subscription status, review, other details. Apply or not?
- Suraksha Diagnostics IPO GMP: According to market observers, shares of the company are trading at par in the grey market today
Suraksha Diagnostics IPO: The initial public offering (IPO) of Suraksha Diagnostics Limited hit the Indian primary market on Friday last week. The public issue will remain open until December 3, 2024. This means investors have two days to apply for the public issue. The medical consultancy services company has fixed Suraksha Diagnostics IPO price band at ₹420 to ₹441 per equity share. The company aims to raise ₹846.25 crore from this initial offer, which is entirely Offer for Sale (OFS). So, Suraksha Diagnostics IPO size is ₹846.25 crore, but not a single rupee would come into the company's balance sheet. The net proceeds will go to the pockets of promoters offloading their stake in the company.
Meanwhile, company shares are trading at par in the grey market today. However, the book build issue received a tepid response on day one of bidding. According to Suraksha Diagnostics IPO subscription status, the public issue has been subscribed to 11 per cent.
Suraksha Diagnostics IPO GMP today
According to stock market observers, the company's shares are trading neither at a premium nor a discount in today's grey market. So, shares of Suraksha Diagnostics Limited are trading at par in the grey market today.
Suraksha Diagnostics IPO subscription status
By 3:33 PM on day 2 of bidding, the public issue had been subscribed 0.24 times, the retail portion had been booked 0.42 times, and the NII segment had been subscribed 0.11 times.
Suraksha Diagnostics IPO review
Speaking on the valuations of the public issue, Prathamesh Masdekar, Research Analyst at StoxBox, said, "Suraksha Diagnostic offers a comprehensive solution for pathology and radiology testing solutions and medical consultation services, operating through an extensive network with a central reference laboratory and eight satellite laboratories. The company provides comprehensive and high-quality diagnostic services in India through the operational network consisting of a flagship central reference laboratory, satellite laboratories and customer touchpoints, including diagnostic and sample collection centres. Some of the company's centres also house polyclinics hosting specialized doctors for patient convenience. Suraksha Diagnostic has implemented a cluster-based 'hub and spoke' model, whereby samples are collected from multiple locations within a cluster for delivery to laboratories for diagnostic testing."
"The company also focuses on a customer-centric approach to delivering our services, leading to high customer satisfaction and increasing customer retention. On the financial front, the company has delivered a Revenue CAGR growth of 20.9% between FY2022-24. As of FY24, Suraksha garnered a market share of ~1.15%-1.30% in its core eastern India market and aims to expand its presence in the northeastern markets further. The company provides pathology and radiology testing services, with revenue primarily concentrated in West Bengal. Its financial performance has been inconsistent, with a setback in FY23, but it has recently shown signs of recovery. At the upper price band of ₹441, Suraksha Diagnostic is valued at FY24 P/E multiple of 96.1x, which is highly valued compared to its peers," the StoxBox expert said.
Assigning an 'avoid' tag to the public issue, Shivani Nyati, Head of Wealth at Swastika Investmart, said, "The company's financial performance is not so encouraging. It received heavy setbacks in the financial year 2022-23 and has shown some signs of recovery during FY24. However, valuations of the public issue also don't leave much on the table for the investors."
Anand Rathi has also assigned an 'avoid' tag to the public issue.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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