Suraksha Diagnostic IPO: Suraksha Diagnostic, an integrated diagnostic chain providing radiology, pathology testing, and medical consultations, is set to launch its ₹846.25 crore initial public offering (IPO) on Friday, November 29, 2024. The subscription window will remain open until December 3, 2024.
The IPO aims to list the company’s equity shares on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) by December 6, 2024.
This article dives deep into the details surrounding the Suraksha Diagnostic IPO, including essential facts you should be aware of before deciding whether to participate. The IPO offers investors an opportunity to invest in a company that has established a significant presence across multiple states, including Bihar, Assam, West Bengal, and Meghalaya, with an extensive network of laboratories and testing centers.
1. Suraksha Diagnostic IPO Details
Suraksha Diagnostic’s IPO will offer 100% offer-for-sale (OFS) of equity shares, valued at ₹846.25 crore, from selling shareholders. The price band for the shares has been fixed between ₹420 and ₹441 per share. The company’s market capitalization at the upper price band is estimated to be approximately ₹2,300 crore. Notably, there is no fresh issue of shares, which means that the company will not receive any proceeds from the IPO.
Key Offerings:
- IPO Subscription Period: November 29 – December 3, 2024.
- Price Band: ₹420 to ₹441 per share.
- Offer Type: Offer for Sale (OFS).
- Market Capitalization: ₹2,300 crore (at upper price band).
2. IPO Subscription and Allotment Information
The IPO is structured as a book-built issue, and the equity shares will be allocated as follows:
- 50% of the issue is reserved for Qualified Institutional Buyers (QIBs).
- 35% of the issue is allocated for Retail Individual Investors (RIIs).
- 10% of the issue is earmarked for Non-Institutional Investors (NIIs).
The minimum bid amount for the IPO is ₹14,994 for one lot, which consists of 34 shares. Investors will need to place their bids within this price band, and the allotment of shares is expected to be finalized on December 4, 2024. The listing of shares on the NSE and BSE is scheduled for December 6, 2024.
Important Dates:
- IPO Opening Date: November 29, 2024.
- IPO Closing Date: December 3, 2024.
- Allotment Date: December 4, 2024.
- Listing Date: December 6, 2024.
3. Suraksha Diagnostic’s Operational Overview
Suraksha Diagnostic operates an extensive network, offering more than 2,300 diagnostic tests to over 1.14 million patients annually. The company’s services are spread across key regions in India, including Bihar, Assam, West Bengal, and Meghalaya. As of March 31, 2024, Suraksha Diagnostic boasts a flagship central reference laboratory, eight satellite laboratories, and 194 customer touchpoints.
In the financial year 2023-24, Suraksha conducted nearly 5.98 million tests, further establishing itself as a key player in the diagnostic services sector. With a diverse range of tests and a strong customer base, Suraksha is well-positioned to cater to the increasing demand for healthcare services in India.
Operational Highlights:
- Flagship Central Laboratory: Hub for diagnostic testing.
- 8 Satellite Laboratories: Expanding its reach across different regions.
- 194 Customer Touchpoints: Providing convenient access to diagnostic services.
- 5.98 Million Tests in FY24: Suraksha’s significant contribution to healthcare testing.
4. Subscription and Market Potential
Suraksha Diagnostic’s IPO presents an exciting opportunity for retail investors looking to get a stake in the growing diagnostic sector in India. With an established presence and proven track record, Suraksha aims to leverage the capital raised through this IPO to further expand its operations and enhance its service offerings.
Given the surge in demand for healthcare services in India, particularly in the diagnostics space, the IPO could attract significant investor interest. Suraksha’s operational efficiency and wide network make it a promising contender for growth in the coming years.
5. The Role of Lead Managers and Registrars
The IPO will be managed by some of India’s most reputed financial institutions. ICICI Securities, SBI Capital Markets, and Nuvama Wealth Management will serve as the book-running lead managers for the offering. Kfin Technologies will act as the registrar to the issue, ensuring that all processes related to share allocation and allotment are handled efficiently.
This involvement of seasoned financial experts adds a layer of trust and credibility to the IPO, making it an attractive option for investors seeking a reliable entry point into the diagnostic sector.
Final Thoughts on Suraksha Diagnostic IPO
The upcoming IPO of Suraksha Diagnostic presents a unique opportunity for investors to enter the booming healthcare and diagnostics sector in India.
With its strong operational foundation, extensive network, and a proven track record, Suraksha Diagnostic is well-positioned to succeed in the competitive diagnostic industry. Whether you are an institutional investor or a retail participant, this IPO could provide an excellent growth opportunity.
