Suraksha Diagnostics IPO day 1: GMP, subscription status, review, date, size, other details. Apply or not?

Suraksha Diagnostics IPO: The initial public offering (IPO) of Suraksha Diagnostics Limited is all set to hit the Indian primary market. The public issue will remain open until December 3, 2024. 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 who are offloading their stake in the company. Meanwhile, on Suraksha Diagnostics IPO opening date, company shares are trading at par in the grey market today.

Suraksha Diagnostics IPO details

1] Suraksha Diagnostics IPO GMP: According to stock market observers, the company’s shares are trading neither at a premium nor a discount in today’s grey market.

2] Suraksha Diagnostics IPO price band: The medical consultancy services company has fixed the issue price at ₹420 to ₹441 apiece.

3] Suraksha Diagnostics IPO date: The book build issue has opened today and will remain open until December 3, 2024.

4] Suraksha Diagnostics IPO size: The company aims to raise ₹846.25 crore from this initial public offering (OFS), which is the entire OFS.

5] Suraksha Diagnostics IPO lot size: Bidders can apply in lots, and one lot comprises 34 company shares.

6] Suraksha Diagnostics IPO allotment date: The most likely date for finalising share allocation is December 4, 2024.

7] Suraksha Diagnostics IPO registrar: KFin Technologies has been appointed official registrar of the book build issue.

8] Suraksha Diagnostics IPO Lead Managers: ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets have appointed public issue lead managers.

9] Suraksha Diagnostics IPO listing date: The public issue is proposed for listing on the BSE and the NSE. The most likely Suraksha Diagnostics IPO listing date is December 6, 2024.

Suraksha Diagnostics IPO: Apply or not?

10] Suraksha Diagnostics IPO review: Reviewing the financials of the company and valuations of the public issue, Prathamesh Masdekar, Research Analyst at StoxBox, said, “Suraksha Diagnostic offers a comprehensive solution for pathology and radiology testing solution 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 StoxBoz expert said.

Anand Rathi has assigned an ‘avoid’ tag to the public issue, saying, “At the upper band, the company is valuing at 99.3x its FY24 earnings along with being valued at 75.0x if we annualize FY25 earnings. Following the issuance of equity shares, the company’s market capitalization stands at ₹22,967.6 million, with a market cap-to-sales ratio of 10.5 based on its FY24 earnings. The diagnostic sector in which the company operates is highly competitive. Moreover, the company’s operations are confined to eastern India, limiting its market scope. We believe the issue is richly priced and recommend an “Avoid” rating for the IPO.”

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.