Suraksha Diagnostics IPO: What does GMP signal after day 1 of bidding? Subscription status, review; should you apply?
- Suraksha Diagnostics IPO was subscribed 11 per cent on the first day. The portion reserved for QIBs was left unsubscribed and the portion reserved for retail investors was booked two per cent.
Suraksha Diagnostics IPO: The mainboard initial public offering (IPO) of diagnostic chain major Suraksha Diagnostics Limited received a tepid response from investors on the first day of subscription. The public issue of the medical services consultancy company hit India's primary market on Friday, November 29, to open for its three-day subscription period and will close on Monday, December 3, 2024.
Suraksha Diagnostics IPO has reserved not more than 50 per cent of the shares in the public issue for the qualified institutional buyers (QIB), not less than 15 per cent for the non-institutional institutional investors (NII), and not less than 35 per cent of the offer is reserved for the retail institutional investors' group. The company aims to raise ₹846.25 crore through the public issue.
Also Read: Suraksha Diagnostic IPO: From key dates to Financials, here are 10 Key things to know from the RHP
Suraksha Diagnostics IPO Subscription Status
On the first day of subscription, Suraksha Diagnostics IPO was subscribed 11 per cent by the end of the session. The portion reserved for QIBs was left unsubscribed, the portion reserved for NIIs was subscribed 0.04 per cent, and the portion reserved for retail investors was booked two per cent. According to BSE data, the IPO received 14,62,612 share applications against 1,34,32,533 shares offered on Friday.
Suraksha Diagnostics IPO Latest GMP
Suraksha Diagnostic IPO grey market premium was Re 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 Diagnostics IPO Details
Suraksha Diagnostic IPO is a book built issue of ₹846.25 crore. The issue is entirely an offer for sale (OFS) of 1.92 crore shares. The OFS involves the sale of up to 19,189,330 equity shares by the selling shareholders. The promoter selling shareholders include Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma.
Investor selling shareholders are OrbiMed Asia II Mauritius Limited, Munna Lal Kejriwal, and Santosh Kumar Kejriwal. Since this IPO is an OFS, all proceeds will go directly to the selling shareholders. The issue's price band has been fixed in the range of ₹420 to ₹441 per equity share of face value of ₹2. The issue's lot size is 34 equity shares and in multiples of 34 equity shares thereafter.
According to the RHP, the objectives of the offer are to facilitate the sale and transfer of up to 19,189,330 equity shares with a face value of ₹2 each by the selling shareholders, and to obtain the benefits of listing these equity shares on the stock exchanges.
Also Read: Suraksha Diagnostic IPO: Price band set at ₹420-441 per share; check issue details, key dates, more
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.
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.
Also Read: Borana Weaves files draft papers with SEBI to raise funds via public issue; Check IPO details
Suraksha Diagnostics IPO Review
Domestic brokerage Swastika Investmart has given an ‘avoid’ rating for the IPO. “The company provides pathology and radiology testing services, with revenue largely concentrated in West Bengal. Financial performance has been inconsistent, with a setback in FY23 but showing signs of recovery recently. The IPO is a complete offer for sale. Valuation appears aggressively high. Investors exploring this sector may find better opportunities among other listed players, making it advisable to avoid this IPO for now,” said the brokerage.
Suraksha Diagnostics Ltd Company Details
The company provides comprehensive, integrated pathology and radiology testing solutions and medical consultation services. It leverages its extensive operational network to serve customers effectively. This one-stop approach ensures convenience and accessibility for all clients' healthcare needs.
According to the Red Herring Prospectus (RHP), Suraksha Diagnostics's listed peers include Dr Lal PathLabs, which has a price-to-earnings (P/E) ratio of 77.08, Metropolis Healthcare, with a P/E of 89.61, Thyrocare, at 65.52, and Vijaya Diagnostic, with a P/E of 86.40. Suraksha Diagnostics has shown impressive growth, with its revenue increasing by 14.75 per cent. The profit after tax witnessed an extraordinary jump of 281.32 per cent between the financial years ending March 31, 2024, and March 31, 2023.
As of June 30, 2024, the operational network includes a flagship central reference laboratory and eight satellite laboratories at diagnostic centres. There are also 215 customer touchpoints, which comprise 49 diagnostic centres and 166 sample collection centres, primarily operated through franchises.
This extensive network spans the states of West Bengal, Bihar, Assam, and Meghalaya, facilitating efficient service delivery and enhanced access to diagnostic testing in the region. In the three months ending in 2024, the firm performed around 1.58 million tests, serving about 280,000 patients. Notably, 95.34 per cent of their revenue from operations originated from their primary region, which includes Kolkata and the surrounding areas of West Bengal.
The diagnostics industry’s hub-and-spoke model, particularly in pathology, is a centralised approach to managing diagnostic testing and laboratory services. The central laboratory serves as the hub in this structure, where samples are received, processed, and analysed. Smaller satellite laboratories, or spokes, are responsible for collecting and transporting samples to the central facility. This model streamlines operations, enhances efficiency, and can lead to faster turnaround times for test results, as highlighted in a recent CRISIL report.
Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
- Top Gainers
- Top Losers
- 52 Week High