Suraksha Diagnostic IPO opens tomorrow: GMP, issue details, 10 key things to know

Suraksha Diagnostic IPO opens for subscription on tomorrow (Friday, November 29). The company provides a comprehensive integrated solution for pathology and radiology testing, along with medical consultation services, leveraging its extensive operational network to serve customers effectively. This one-stop approach ensures convenience and accessibility for all the healthcare needs of their clients.

As of June 30, 2024, the operational network includes a flagship central reference laboratory and eight satellite laboratories located at diagnostic centres. There are also 215 customer touchpoints, which comprise 49 diagnostic centres and 166 sample collection centres, primarily operated through franchises. This extensive network spans the states of West Bengal, Bihar, Assam, and Meghalaya, facilitating efficient service delivery and enhanced access to diagnostic testing in the region.

In the three months ending in 2024, the firm performed around 1.58 million tests, serving about 280,000 patients. Notably, 95.34% of their revenue from operations originated from their primary region, which includes Kolkata and the surrounding areas of West Bengal.

The diagnostics industry’s hub-and-spoke model, particularly in pathology, is a centralised approach to managing diagnostic testing and laboratory services. In this structure, the central laboratory serves as the hub, where samples are received, processed, and analysed. Smaller satellite laboratories, or spokes, are responsible for collecting and transporting samples to the central facility. This model streamlines operations, enhances efficiency, and can lead to faster turnaround times for test results, as highlighted in a recent CRISIL report.

According to the Red Herring Prospectus (RHP), the listed peers of Suraksha Diagnostics include Dr Lal PathLabs, which has a price-to-earnings (P/E) ratio of 77.08, Metropolis Healthcare with a P/E of 89.61, Thyrocare at 65.52, and Vijaya Diagnostic with a P/E of 86.40.

Suraksha Diagnostics has shown impressive growth, with its revenue increasing by 14.75%. More notably, the company's profit after tax (PAT) witnessed an extraordinary jump of 281.32% between the financial years ending March 31, 2024, and March 31, 2023.

Here are the 10 key things to know about Suraksha Diagnostic IPO:

Suraksha Diagnostic IPO date: The issue opens for subscription on Friday, November 29, and closes on Tuesday, December 3.

Suraksha Diagnostic IPO price band: The issue's price band has been fixed in the range of ₹420 to ₹441 per equity share of face value of ₹2.

Suraksha Diagnostic IPO lot size: The issue's lot size is 34 equity shares and in multiples of 34 equity shares thereafter.

Anchor investors: The allocation to anchor investors for Suraksha Diagnostic IPO is scheduled to take place today (Thursday, November 28).

Suraksha Diagnostic IPO details: The IPO is solely an Offer for Sale (OFS), involving the sale of up to 19,189,330 equity shares by the selling shareholders. The promoter selling shareholders include Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma. Additionally, investor selling shareholders are OrbiMed Asia II Mauritius Limited, Munna Lal Kejriwal, and Santosh Kumar Kejriwal. Since this IPO is an OFS, all proceeds will go directly to the selling shareholders.

Suraksha Diagnostic IPO objective: According to the RHP, the objectives of the offer are to facilitate the sale and transfer of up to 19,189,330 equity shares with a face value of ₹2 each by the selling shareholders, and to obtain the benefits of listing these equity shares on the stock exchanges.

Suraksha Diagnostic IPO listing date and allotment details: Tentatively, Suraksha Diagnostic IPO basis of allotment of shares will be finalised on Wednesday, December 4, and the company will initiate refunds on Thursday, December 5, while the shares will be credited to the demat account of allottees on the same day following refund. Suraksha Diagnostic share price is likely to be listed on BSE and NSE on Friday, December 6.

Lead Manager and Registrar of Suraksha Diagnostic IPO: ICICI Securities Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd are the book-running lead managers for the Suraksha Clinic and Diagnostic IPO. Kfin Technologies Ltd serves as the registrar for this issue.

Suraksha Diagnostic IPO reservation: The company has reserved not more than 50% of the shares in the public issue for qualified institutional buyers (QIB), not less than 15% for non-institutional Institutional Investors (NII), and not less than 35% of the offer is reserved for retail investors.

Suraksha Diagnostic IPO GMP today: Suraksha Diagnostic IPO grey market premium was ₹0, which meant shares were trading at their issue price of ₹441 with no premium or discount in the grey market according to investorgain.com.

'Grey market premium' indicates investors' readiness to pay more than the issue price.

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