Suraksha Diagnostic IPO Day 1: GMP, Price Band, Subscription, Key Dates and Review

The Rs 846-crore initial public offer (IPO) of Suraksha Diagnostic was subscribed 3% so far on the first day of the bidding process on Friday.

At 10:33 am, the issue attracted bids for 3,72,980 shares or 3% against the issue size of 1,34,32,533 shares. The retail portion of the issue was subscribed at 6%, while there were no bids from qualified institutional buyers. The allocation for non-institutional investors (NII) was booked at 1%.

The issue, which is completely an offer for sale (OFS) of Rs 1.91 crore shares, will be available for bidding till December 3. Since the IPO is an OFS, the company will not receive any proceeds from the offer.

Suraksha Diagnostic IPO: Opening Date, Allotment and Listing Date

Suraksha Diagnostic IPO kicked-off for subscription on November 29 and will close on December 3. The allotment for the IPO will be completed on December 4 and the listing is scheduled for December 6.

Suraksha Diagnostic IPO: GMP today

The GMP of Suraksha Diagnostic is currently Rs 0 in the unlisted markets, which indicates a premium of 0% over the issue price.

Suraksha Diagnostic IPO: Price band

Suraksha Diagnostic has fixed a price band of Rs 420-441 per share, where investors can bid for 34 shares in one lot and in multiples thereafter.

Suraksha Diagnostic IPO review

Most analysts advised investors to avoid subscribing to the IPO as the issue is an OFS and it is richly valued. Moreover, the diagnostic sector in which the company operates is highly competitive.

"The company's operations are confined to the eastern part of India, limiting the scope of its market. We believe that the issue is overly priced and recommend Avoid to the IPO," said Anand Rathi.

"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 Swastika Investmart.

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About Suraksha Diagnostic

Suraksha Diagnostic is the largest full-service and integrated diagnostic chain headquartered in east India in terms of operating income as of FY23. It offers a one-stop integrated solution for pathology and radiology testing, and medical consultation services to its customers.

Its operational network consists of a flagship central reference laboratory, 8 satellite laboratories and 194 customer touchpoints which include 48 diagnostic centres, and 146 sample collection centres (primarily franchised), across the states of West Bengal, Bihar, Assam, and Meghalaya, as of March 31, 2024.

During fiscal 2024, it conducted nearly 5.98 million tests serving approximately 1.14 million patients.

According to a Crisil report, the diagnostics services market in India is estimated to be around Rs 86,000-87,000 crore in fiscal 2024 and is projected to grow at a CAGR of around 10% to 12% to reach approximately Rs 1,27,500 - Rs 1,37,500 crore by fiscal 2028.

In FY24, Suraksha's revenues improved to Rs 219 crore as compared to Rs 190 crore in the year-ago period. Meanwhile profit after tax grew multifold to Rs 23 crore.

ICICI Securities, Nuvama Wealth Management and SBI Capital Markets are the book running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)