Suraksha Diagnostics Limited has launched its Initial Public Offering (IPO), inviting public subscriptions until December 3, 2024. The company aims to raise ₹846.25 crore through an Offer for Sale (OFS), meaning no new capital will be infused into the company’s balance sheet. Instead, the proceeds will benefit the promoters offloading their stakes.
Key IPO Details
| Aspect | Details |
|---|---|
| IPO Price Band | ₹420 – ₹441 per equity share |
| IPO Size | ₹846.25 crore (OFS) |
| IPO Dates | Nov 29, 2024 – Dec 3, 2024 |
| Lot Size | 34 shares |
| Registrar | KFin Technologies |
| Lead Managers | ICICI Securities, SBI Capital Markets, Nuvama Wealth Management |
| Proposed Listing | BSE, NSE |
| Listing Date | Dec 6, 2024 |
Subscription Status
As of 10:57 AM on Day 1, the IPO has been subscribed as follows:
- Retail Investors: 0.08 times
- Non-Institutional Investors (NII): 0.01 times
- Overall Subscription: 0.01 times
Grey Market Premium (GMP)
Currently, shares are trading at par in the grey market, indicating no premium or discount. This reflects a neutral market sentiment.
Financial Review
Suraksha Diagnostics has demonstrated a Revenue CAGR growth of 20.9% between FY2022-24, with operations primarily concentrated in West Bengal. However, financial inconsistencies, including a setback in FY23, have raised concerns about the company’s performance.
| Financial Metric | FY2022-24 Performance |
|---|---|
| Revenue CAGR | 20.9% |
| Market Share | ~1.15%-1.30% (Eastern India) |
| Valuation (FY24 P/E) | 96.1x |
Expert Opinions
- Positive Perspective:
Prathamesh Masdekar from StoxBox highlights Suraksha’s hub-and-spoke model, robust diagnostic services, and a customer-centric approach. Despite challenges, the company is positioned for growth in the northeastern markets. - Cautious Approach:
Analysts from Anand Rathi recommend avoiding the IPO, citing high valuations and limited geographic presence. The market cap-to-sales ratio of 10.5 and the P/E multiple of 99.3x raise concerns about overvaluation.
Should You Apply?
Investors should consider the following:
- Pros: Comprehensive diagnostic services, a strong operational network, and growth potential in underserved markets.
- Cons: High valuations, regional concentration, and financial inconsistencies.
Final Recommendation:
This IPO is ideal for long-term investors who believe in the diagnostic sector’s potential but may not suit those seeking quick returns.
Disclaimer: The information provided is for educational purposes only. Please consult a financial advisor before making investment decisions.
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