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Suraksha Diagnostic IPO 1st Day: Key Details and Insights

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Suraksha Diagnostic IPO 1st Day: Key Details and Insights

The much-anticipated Suraksha Diagnostic IPO is set to open for public subscription on November 29, 2024, and will remain open until December 3, 2024. Known for its technology-driven diagnostic services, Suraksha Diagnostic aims to expand its operational reach and consolidate its position as a leader in the diagnostic space. Below are the key aspects you need to know about this IPO.

Suraksha Diagnostic IPO 1st Day Subscription Status:

  • QIBs: 0 Times
  • HNIs 10+: 0.04 times
  • HNIs 2+: o.o8 times
  • Retails: 0.2 times
  • Total: 0.11 times
  • Live Subscription

1. Price Band and Lot Size

The IPO price band has been fixed at ₹420 to ₹441 per equity share, with a face value of ₹2 each. Investors can bid for a minimum lot size of 34 shares and in multiples thereafter. At the upper price band, the minimum investment required will be approximately ₹15,000.

2. IPO Structure

This offering is entirely an Offer for Sale (OFS), comprising 19,189,330 equity shares. The proceeds will go directly to the selling shareholders, which include the company’s promoters and investor stakeholders like OrbiMed Asia II Mauritius Limited and Munna Lal Kejriwal.

3. Allocation Details

  • Qualified Institutional Buyers (QIBs): 50% of the shares are reserved.
  • Non-Institutional Investors (NIIs): 15% allocation.
  • Retail Investors: 35% of the offer is reserved, making it accessible to individual investors.

4. Anchor Investors

The company raised ₹253 crore from anchor investors ahead of the public offering. This is a strong indicator of institutional confidence in the business.

5. Business Overview

Suraksha Diagnostic is a technology-driven diagnostic chain offering over 2,300 tests across various specialties. The company operates 43 diagnostic centers with 120 polyclinics and employs more than 750 doctors. Its services include pathology, radiology, and online medical consultations, providing comprehensive care to patients.

6. Financial Performance

The company has shown robust growth:

  • Revenue Growth: Increased by 14.75% in FY 2023-24 compared to the previous fiscal year.
  • Profit After Tax (PAT): Surged by 281.32%, reflecting strong profitability and operational efficiency.

7. Industry Comparison

The company’s peers in the listed space include Dr Lal PathLabs, Metropolis Healthcare, Thyrocare, and Vijaya Diagnostic, with price-to-earnings (P/E) ratios of 77.08, 89.61, 65.52, and 86.40, respectively. Suraksha’s valuation seems attractive compared to those of these established players.

8. GMP and Investor Sentiment

As of the latest updates, the Grey Market Premium (GMP) for Suraksha Diagnostic shares is hovering around ₹35-40 (42%), indicating positive investor sentiment. However, GMP trends can be volatile, so it’s essential to approach them cautiously.

9. Key Dates

  • IPO Opens: November 29, 2024
  • IPO Closes: December 3, 2024
  • Allotment Date: December 4, 2024
  • Refund Initiation: December 5, 2024
  • Shares Credited to Demat Accounts: December 5, 2024
  • Listing Date: December 6, 2024, on the BSE and NSE.

10. Risk Factors

Investors should consider the following risks:

  • Competition: The diagnostic sector is competitive with established players.
  • Regulatory Challenges: Changes in healthcare regulations could impact operations.
  • Economic Sensitivity: Consumer spending on diagnostics is partially discretionary and sensitive to economic downturns.

Should You Invest?

The IPO offers an opportunity to invest in a growing healthcare company with a strong financial track record and expansive service offerings. The rising demand for diagnostic services and the company’s focus on innovation could be growth drivers. However, potential investors should analyze the valuation, compare it with industry peers, and consider the risks before investing.

Suraksha Diagnostic IPO RHP:

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