Star Imaging Path Lab Limited, a prominent player in the diagnostic services sector, is set to open its Initial Public Offering (IPO) from August 8 to August 12, 2025. With a rich legacy dating back to 1978, the company has grown from its roots at Janta X-Ray Clinic to become the only private diagnostic brand in Delhi-NCR with complete Radiology, Pathology, Cardiology, and Neurology services under one roof.

The upcoming IPO is a Book Built Issue of ₹69.46 Crores, comprising a Fresh Issue of 39.20 lakh shares worth ₹55.66 Crores and an Offer for Sale (OFS) of 9.72 lakh shares worth ₹13.80 Crores. The shares are being offered in a price band of ₹135 to ₹142, and the IPO will be listed on the BSE SME platform on or around August 18, 2025.

Financial Performance Indicates Strong Growth

Star Imaging Path Lab’s revenue performance has shown consistent and sharp growth over the past three years. For FY 2025, 2024, and 2023, the company reported revenues of ₹8,378.74 Lakh, ₹7,997.42 Lakh, and ₹5,868.18 Lakh respectively. Alongside the revenue growth, EBITDA also climbed steadily from ₹597.07 Lakh in FY23 to ₹2,888.88 Lakh in FY25.

This strong performance translated to Profit After Tax (PAT) growth from ₹58.29 Lakh in FY23 to ₹1,595.54 Lakh in FY25, highlighting robust operational efficiency and profitability.

The pre-issue EPS is ₹11.8, while the post-issue EPS is ₹9.16 for FY24. With a pre-issue P/E ratio of 12.03x and post-issue P/E of 15.50x, the IPO is seen as fairly and fully priced. The Return on Capital Employed (ROCE) stands at 29.92%, Return on Equity (ROE) at 41.00%, and RoNW at 40.65%. These indicators are impressive for a company entering the capital markets.

IPO Details and Listing Expectations

The IPO’s minimum lot size is 1,000 shares, and retail investors are required to invest in a minimum of 2 lots (2,000 shares), amounting to ₹2,84,000 at the upper band of ₹142 per share.

SHARE INDIA CAPITAL SERVICES PRIVATE LIMITED is the book running lead manager, while KFIN TECHNOLOGIES LIMITED is the registrar. Share India Securities Limited is acting as the Market Maker for this IPO.

The market capitalisation at the upper price band will stand at ₹247.36 Crores, positioning the company well within the mid-sized healthcare diagnostics sector.

Anchor Investor Participation

On August 5, 2025, Star Imaging Path Lab successfully raised ₹18.51 Crores from Anchor Investors, allocating 13,04,000 equity shares at ₹142 per share. This early anchor investor interest adds credibility to the offering and highlights confidence in the company's future performance.

Grey Market Premium (GMP) Trend and Listing Gain

The Grey Market Premium (GMP) for Star Imaging Path Lab IPO stands at ₹18 per share, indicating a listing gain of 12.67%. The expected listing price is around ₹160, based on the GMP. However, it’s important to remember that GMP is unofficial and not regulated, and actual listing prices may differ.

Still, this signal combined with strong financials suggests that listing gains are possible, though risky investors are advised to proceed with caution.

IPO Allotment and How to Check Status

The IPO allotment is scheduled to be finalised on August 13, 2025. Investors can check their status on the KFIN TECHNOLOGIES LIMITED registrar website by:

• Selecting "Star Imaging and Path Lab Limited IPO" from the list

• Entering either their Application Number, PAN, or DP/Client ID

• Submitting the form to see allotment status

Allotment results will typically be available by late evening on the same date.

Use of IPO Proceeds

Star Imaging Path Lab plans to utilise the net proceeds from the IPO as follows:

1. ₹2,500.00 Lakh for working capital requirements

2. ₹1,500.00 Lakh for repayment or prepayment of existing borrowings

3. ₹514.08 Lakh towards the purchase of refurbished medical equipment

4. Remaining funds for general corporate purposes and issue-related expenses

This distribution reflects the company’s intent to strengthen its operations and infrastructure, reduce debt and further improve profitability.

Company Background and Promoter Experience

The company was conceptualised as a high-tech arm of Janta X-Ray Clinic, which has served patients since 1978. Today, Star Imaging Path Lab Limited is a trusted diagnostic brand in Delhi and NCR, serving not just walk-in customers but also panels, referrals, and preventive care clients.

The business is led by Mr. Pawan Gupta, who brings 21 years of experience in financial strategy and market analysis. His decisions have steered the company into becoming a leader in the diagnostics space. Ms. Chhaya Gupta, with 7.5 years of experience in HR and operations, further adds operational strength.

Their leadership has been instrumental in enabling the company to scale operations while maintaining high standards of quality and service delivery.

Risks and Recommendations

Though the company has reported strong growth, investors should also consider the following:

• The IPO is fully priced, leaving limited room for error or downturn

• While GMP suggests gains, market sentiments could shift

• Investors should be cautious of liquidity constraints, given the BSE SME platform's limited reach

That said, the company’s expansion strategy, sector tailwinds, and growing diagnostic market in India create a compelling case for investors looking for exposure in the healthcare sector.

Disclaimer
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Mahendra Realtors and Infrastructure, Bluestone Jewellery and Lifestyle, Icodex Publishing Solutions, Star Imaging and Path Lab, Medistep Healthcare, ConnPlex Cinemas, ALL Time Plastics, JSW Cement, Sawaliya Foods Products, ANB Metal Cast.

The Current active IPO are Parth Electricals & Engineering, Jyoti Global Plast, Essex Marine, Aaradhya Disposal Industries, BLT Logistics, Bhadora Industries, Highway Infrastructure.

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