The Suraksha Diagnostic IPO is set to open for public subscription on November 29, 2024, offering investors a compelling opportunity in the diagnostic healthcare sector. The initial public offering (IPO) involves a total offer-for-sale (OFS) valued at ₹846.25 crore. Here’s a detailed look at the key aspects of this IPO.
1. Subscription Dates
The IPO will remain open for public subscription from November 29 to December 3, 2024. Investors will have five days to place their bids for the shares.
2. IPO Structure
This IPO is an offer-for-sale (OFS), meaning existing shareholders will sell their stakes. There are no fresh equity shares issued, and the company will not directly receive proceeds from the sale.
3. Price Band
The price band for the IPO is set between ₹420 and ₹441 per share. At the upper price band, the estimated market capitalization of the company stands at around ₹2,300 crore.
4. Lot Size and Minimum Investment
Retail investors can bid for a minimum of one lot, comprising 34 shares. The cost of a single lot is ₹14,994 at the upper price band. Investors can place bids in multiples of this lot size.
5. Investor Reservation
The issue allocation is structured as follows:
- 50% reserved for Qualified Institutional Buyers (QIBs).
- 35% allocated for Retail Individual Investors (RIIs).
- 10% set aside for Non-Institutional Investors (NIIs).
6. Objective of the IPO
Since the IPO is fully an OFS, the company will not raise any fresh capital. The proceeds will go to the selling shareholders.
7. Key Managers
The IPO is managed by ICICI Securities, SBI Capital Markets Ltd, and Nuvama Wealth Management as the book-running lead managers. KFin Technologies is the official registrar.
8. Allotment and Listing Dates
- The basis of allotment will be finalized on December 4, 2024.
- Shares are expected to be listed on the NSE and BSE on December 6, 2024.
9. Company Profile and Strengths
Suraksha Diagnostic is a leading integrated diagnostic chain offering radiology, pathology, and medical consultation services. As of March 31, 2024, the company operates:
- A flagship central reference laboratory.
- Eight satellite laboratories.
- 194 customer touchpoints.
The company provides over 2,300 diagnostic tests across key regions, including Bihar, Assam, West Bengal, and Meghalaya. In FY24, it conducted approximately 5.98 million tests, catering to around 1.14 million patients.
Strengths:
- Comprehensive Service Portfolio: A one-stop solution for diagnostic and medical consultation needs.
- Extensive Network: Strategic presence in Eastern and Northeastern India, ensuring accessibility.
- Proven Track Record: High volume of tests and patients, showcasing operational scalability.
Risks:
- Geographical Concentration: Limited to specific regions, which may restrict growth.
- Competitive Market: Faces competition from established players in the diagnostics sector.
10. Industry Outlook
India’s diagnostic industry is poised for growth, driven by increasing healthcare awareness, rising disposable incomes, and technological advancements. Suraksha Diagnostic’s strong operational network positions it to capitalize on this expanding market.
Final Thoughts
The Suraksha Diagnostic IPO presents an opportunity for investors to invest in a well-established healthcare company with a robust regional presence. However, potential investors should carefully assess the risks and perform due diligence before participating.
For more updates on upcoming IPOs, schedules, and investment insights, visit our dedicated IPO page.
References:
- Data and insights sourced from financial statements and public disclosures of Suraksha Diagnostic.