Last Updated on: 5th December 2024, 04:34 pm
Suraksha Diagnostics’ IPO is opening on 29 November 2024 and would close on 3 December 2024,With an offer price of Rs.420 to Rs.441.If you are planning to apply,you must read this .
Suraksha Diagnostic is a NABL acredited diagnostic chain whose IPO opened on 29th November,2024.Total of 1.92 crore shares are offered for sale,valuing Rs.846.23 crore
IPO Details At a Glance
- Issue open 29th November 2024
- Issue closes on 3rd December 2024
- Allotment Basis 4th December 2024
- Refund Initiation 5th December 2024
- Credit of Shares 5th December 2024
- Date of Listing 6th December 2024
- Lot Size 34 shares
- Price Band Rs.420 to Rs.441 per share
- Face Value Rs.2 per share
- Issue size 19189330 shares
- Value of issue size Rs.846.25 cr
- Issue type Book building
- Listing at NSE,BSE.
- Offer for sale 19189330 shares
IPO Lot Size Details
- Retail min 1 lot( 34 shares)Rs14994
- Retail max 13 lot (442 shares)Rs.194922
- HNI -S (Min)14 Lot(476shares)Rs.209916
- HNI -S(Max)66Lot(2244 shares)Rs.989604
- HNI-B(Min)67Lot(2278 shares)Rs.100459
IPO Reservation Details
| category | Maximum allotees | Shares offered |
| QIB | NA | 3937867 (20%) |
| NII | 2878400 (15%) | |
| NII -s | 2015 | 959466(5%) |
| NII -B | 4031 | 1918934 (10%) |
| Retail | 197537 | 6716266 (35%) |
| Anchor investor | NA | 5756797 |
| Total | 19189330 (100%) |
Anchor Investors Details
Suraksha Dignostic IPO anchor investor Bid date was on 28th November,2024.It raised Rs.253.87 crores from anchor investors.Anchor investors were offered 5756797 shares.Their lock in period end date for 50% shares(30 days)3rd January ,2025 and for remaining shares lock in period ends (90 days) 4th March ,2025.
GMP of Suraksha Dignostic.
The GMP market is showing nil premium as of 2nd December,which means shares of the company are trading at no premium to its issue price.
About the Company
Suraksha Dignostic was started in 2005.It is Kolkata based diagnostic chain which provide integrated pathology,radiology testing and also provide medical consultancy services.The company offers both online and offline medical consultancy via its 44 dignostic centres,120 polyclinics and 750 doctors.
The company has Central laboratory with in satellite Laboratories and 250 customer touch points loading 166 sample collection centres and 49 diagnostic centres June 30 2024 operating in West Bengal Bihar Assam and Meghalaya
.The company uses modern technology platforms and Systems such as Laboratory information management system(LIMS), fully integrated radiology information system(RIS) and picture archive communication system(PACS).It also provides vaccination services.
During Fiscal year 2024,the company has done around 6 million tests.
Financials
Suraksha Dignostic’s revenue increased by 14.75%,profit after tax(PAT) for year ending March 2024,jumped 281.32% as compared to year ending March 31,2023.
| Particulars | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
| Sales(Rs.cr) | 140 | 223 | 190 | 219 |
| PAT(Rs cr) | 6 | 24 | 7 | 24 |
| Reserves(Rs. cr) | 118 | 141 | 148 | 172 |
| ROCE | 8% | 23% | 9% | 17% |
| Borrowing | 18 | 21 | 99 | 92 |
Object of Issue
The issue is totally offer for sale,which means the fund received from sale of shares would go the owners selling shares.
Business Model
The company has a hub and spoke model.There is a central laboratory (hub)where samples collected from different (spoke)are received ,analysed and report is generated and sent.This results in faster TAT(turn around time) for results and aliviates need and capital expense to set up lab at different locations.
There are 13 hub centres,which can conduct all sample pathology sample collection,basic and advanced radiology tests.Thete are 11 medium spoke centres,23 small centres and 2 centres operated unde public private partnership model which can also collect all pathology samples and basic Radiology tests.There are also 166 sample collection centres (franchise based) a lab network with flagship central lab and 8 satellite lab.
Analysis
Suraksha Dignostic is undoubtedly a flourishing dignostic chain in eastern India,with bright future.The competition in this arena is stiff.With peers like Dr.Lal pathlabs,Thyrocare,Metropolis Healthcare,how well can Suraksha compete is what we need to see.
Suraksha listing at the issue price would make its market cap of Rs.2200 crore (aprox),with P/E of 90 ,which is higher tgan the P/E of its listed peers,viz.,Dr.Lal PathLabs P/E 77.08Metropolis HealthcareP/E 89.6,Thyrocare at 65.52.Although there is an extraordinary growth in profit(PAT) in the year ended 31March 2024,but there is a fluctustion in the performance when we see the last few years’ performance.
The GMP market is showing premium as nill which suggest low enthusiasm.
Factors like ,Inconsistent performance,high valuation compared to peers,regional operation limitation,one should take into account while taking investment decision.
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