One of the main reasons for this subdued show is the IPO structure, which is entirely an offer for sale (OFS) of 1.92 billion shares. This means that the company will not receive any proceeds from the offering and the entire funds will be passed on to the selling shareholders.
Suraksha Diagnostics IPO: GMP Today
In line with the sluggish response from investors to the IPO, Suraksha Diagnostics’ GMP also has a premium of 0% over the issue price at Rs 0 in the gray market.
Suraksha Diagnostics IPO: Allotment and Listing Date
Suraksha Diagnostics IPO stock allocation will be confirmed on December 4, and listing is scheduled for December 6.
Suraksha Diagnostics IPO: Price Range
Suraksha Diagnostic has fixed a price band of Rs 420-441 per share, where investors can bid for 34 shares in one lot and multiple times thereafter.
Also read | Shares of Varun Beverages fell over 5% as GST on soft drinks could be hiked by 35%.
Suraksha Diagnostics IPO review
Most analysts have recommended avoiding the IPO due to its high valuation and the fact that it is an outright offer for sale (OFS). Concerns have also been raised due to the competitive nature of the diagnostics segment and the company’s limited geographic footprint.
Brokerage firm Anand Rathi highlighted that the company’s operations are concentrated in eastern India, which limits its market reach. “We believe the stock is overpriced and recommend avoiding the IPO,” the company said.
Swastika Investmart echoed similar sentiments, pointing out its aggressive valuation. “The IPO is an outright sell offer. Valuations are aggressively high. Investors exploring this sector may find better opportunities among other listed companies and are therefore advised to avoid this IPO at this time,” the company said.
Introduction to Suraksha Diagnostics
Headquartered in East India, Suraksha Diagnostic is the region’s largest integrated diagnostic chain by operating profit in FY23. We provide comprehensive diagnostic solutions including pathology, radiology, and medical consultation.
As of March 31, 2024, the network consists of a flagship central reference laboratory, eight satellite laboratories and 194 customer touchpoints, including 48 diagnostic centers and 146 franchised specimen collection centers spread across West Bengal, Bihar, Assam and Meghalaya. It is configured.
Suraksha conducted approximately 5.98 million tests in FY24 and served approximately 1.14 million patients. This year, revenue rose to Rs 21.9 billion from Rs 19 billion in FY23, while profit after tax surged to Rs 2.3 billion.
According to CRISIL, India’s diagnostics market was valued at Rs 86,000-87,000 billion in FY24 and is expected to grow at a CAGR of 10-12% to reach Rs 127,500-137,500 billion by FY28.
Suraksha Diagnostics’ shares will be listed on BSE and NSE, with ICICI Securities, Nuvama Wealth Management and SBI Capital Markets acting as bookrunners for the issue.
Also read | Swiggy shares rose more than 9% ahead of its first second quarter results since listing.
(disclaimer: Recommendations, suggestions, views and opinions provided by experts are their own. It does not represent the views of The Economic Times)
