Suraksha Diagnostic IPO Price Band Fixed, Issue Opens on November 29
Suraksha Diagnostic IPO
Suraksha Diagnostic IPO: Price Band Announced, Subscription Starts on November 29
Suraksha Diagnostic Limited, a leading player in the diagnostic services sector, has officially announced the price band for its highly anticipated Initial Public Offering (IPO).
The company has set the price band at Rs 420 to Rs 441 per share, allowing investors to participate in its public issue.
The IPO will open for subscription on November 29, 2024, and investors will have until December 3, 2024, to submit their bids.
With the IPO, Suraksha Diagnostic plans to raise Rs 846.25 crore, which will primarily consist of an Offer for Sale (OFS), as no new shares are being issued by the company. A total of 1.91 crore equity shares will be offered for sale by existing shareholders.
The Suraksha Diagnostic IPO is poised to be a significant event in the healthcare and diagnostic services sector, which is rapidly expanding in India.
The offering provides a unique opportunity for investors to gain exposure to a company with a wide customer base and a strong presence in several key states.
Suraksha Diagnostic IPO: Offer for Sale Breakdown
The Offer for Sale (OFS) includes the sale of equity shares held by the company’s existing promoters, large institutional investors, and other stakeholders.
The major participants in this offer are the company’s promoters and investors, with the following shares being offered:
- Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma, the promoters of Suraksha Diagnostic, will each sell 21.32 lakh shares.
- Orbimed Asia II Mauritius, a global investor and the largest shareholder in Suraksha Diagnostic, will offload 1.06 crore shares. Orbimed holds a significant 33.35% stake in the company.
- Munna Lal Kejriwal and Santosh Kumar Kejriwal, two other major stakeholders, will each sell 21.32 lakh shares.
The IPO will not involve the issuance of new shares, which means the funds raised will not directly impact the company’s balance sheet but will instead go to the existing shareholders.
The company aims to raise around Rs 253 crore through the anchor book portion of the IPO, which will be allocated to select institutional investors before the issue opens to the public on November 29.
Key Dates for Suraksha Diagnostic IPO
- IPO Opens: November 29, 2024
- IPO Closes: December 3, 2024
- Anchor Book Launch: November 28, 2024
- Allotment Results: December 5, 2024
- Trading Begins: December 6, 2024
The IPO is expected to attract significant interest from investors, as it offers exposure to a growing healthcare and diagnostics market that has seen substantial demand in recent years.
Once the shares are allotted, the company’s stock will be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange), allowing retail and institutional investors to begin trading.
Company Profile: Suraksha Diagnostic
Founded in 2010, Suraksha Diagnostics has emerged as one of the prominent diagnostic services providers in India, offering a wide range of services in the fields of pathology, radiology, and medical consultations.
The company’s business model is based on providing comprehensive diagnostic solutions through an extensive operational network that spans multiple states, including West Bengal, Bihar, Assam, and Meghalaya. Suraksha Diagnostics is known for its customer-centric approach and robust infrastructure that enables it to deliver high-quality diagnostic services to millions of patients.
As of March 31, 2024, Suraksha Diagnostics operates with a strong network of 8 satellite laboratories, a flagship central reference laboratory, and 194 customer touchpoints.
These touchpoints include 48 diagnostic centers and 146 sample collection centers, which are primarily franchised.
This network allows the company to serve a large number of patients and cater to the growing demand for diagnostic services in its operating regions.
During FY24, Suraksha Diagnostics conducted approximately 5.98 million tests, serving around 1.14 million patients.
This impressive operational scale demonstrates the company’s strong market presence and operational efficiency, which has been crucial to its success in the competitive diagnostic sector.
The Competitive Landscape
Suraksha Diagnostics operates in a highly competitive industry with several large players such as Dr. Lal PathLabs, Metropolis Healthcare, Thyrocare, and Vijaya Diagnostics.
These companies have established brands and a wide customer base, making the diagnostic services sector a challenging environment for new entrants.
However, Suraksha Diagnostics differentiates itself with its strong regional presence and ability to provide personalized services across diverse customer segments.
The IPO represents an opportunity for investors to take part in the growth story of Suraksha Diagnostics, as it aims to expand its service offerings and enhance its market share.
The company’s regional focus allows it to tap into underserved markets, especially in the eastern part of India, where it has already established a loyal customer base.
Financial Insights and IPO Objectives
Through this IPO, Suraksha Diagnostics aims to raise Rs 846.25 crore. As mentioned earlier, the offer will be completely an Offer for Sale (OFS), and no fresh shares will be issued by the company.
Therefore, the primary objective of the IPO is to provide an exit opportunity to the existing investors and promoters.
Orbimed Asia II Mauritius, which holds a large stake in the company, is looking to reduce its exposure, while the promoters and other stakeholders are looking to liquidate part of their holdings.
The company plans to utilize the funds raised from the anchor book, which will be launched on November 28, to attract institutional investors, ensuring strong demand and stable market performance once the IPO is open.
The funds raised will be used for general corporate purposes and for the potential expansion of its diagnostic network.
Final Remarks: Should You Invest in Suraksha Diagnostic IPO?
The Suraksha Diagnostic IPO presents an attractive opportunity for investors looking to invest in the healthcare sector.
With a competitive price band of Rs 420-441 per share, the company offers exposure to a rapidly growing market that is witnessing increased demand for diagnostic services.
The strong financial performance, robust infrastructure, and growing market presence make Suraksha Diagnostics an appealing choice for investors.
Given its operational scale, established regional footprint, and comprehensive service offerings, Suraksha Diagnostics has the potential to emerge as a leading player in the diagnostic services market.
However, like any investment, potential investors should carefully assess the risks associated with the company’s future growth prospects and the competitive pressures in the healthcare sector.
The IPO opens on November 29, and investors can start trading in the company’s shares once they are listed on December 6.
