Suraksha Diagnostic, established in 1992, has built a strong reputation in Kolkata by offering comprehensive pathology and radiology services under one roof. Their strategy combines their dominant position in their core geography with an extensive network, which allows them to capitalize on the growing market for organized diagnostic services in Eastern India and North-Eastern India. With a strong track record and expertise, Suraksha Diagnostic is poised to expand its footprint further in these fast-growing markets.

The Suraksha Diagnostic IPO is a Book Built Issue amounting to ₹846.24 Crores, consisting entirely of an Offer for Sale of 191.89 Lakh Shares. The subscription period opened on November 29, 2024, and will close on December 03, 2024. The allotment is expected to be finalized on December 04, 2024, with a tentative listing date of December 06, 2024, on both BSE and NSE.

IPO Price Band and Market Capitalization

• Price Band: ₹420 to ₹441 per equity share.
• Market Capitalization (at ₹441 per share): ₹2,296.76 Crores.
• Lot Size: 34 shares.
• Retail Investor Minimum Investment: ₹14,994 (1 lot).
• HNIs Minimum Investment: ₹2,09,916 (14 lots).

Grey Market Premium (GMP) and Market Trends

As of now, the Grey Market Premium (GMP) for the Suraksha Diagnostic IPO is ₹0, suggesting no significant expectations of listing gains. This lack of movement in GMP may indicate a limited investor interest or expectations for modest post-IPO performance. However, it’s important to remember that GMP operates in an unregulated environment and doesn’t necessarily reflect the true market value.

Subscription Status

As of 11:00 AM on December 2, 2024, the IPO has been subscribed 0.18 times on its second day of subscription. You can monitor the live subscription status on the BSE platform.

Suraksha Diagnostic IPO Allotment Process

• Allotment Date: December 04, 2024
• To check the allotment status, visit the Registrar's website and input your application number, PAN, or DP Client ID.

Objectives of Suraksha Diagnostic IPO

Since the IPO is an Offer for Sale, Suraksha Diagnostic will not receive any proceeds from the Offer. Instead, the proceeds (after deducting related expenses) will be distributed to the Selling Shareholders in proportion to the shares sold by them.

Financial Performance and Valuation

• Revenues: ₹618.49 Million (FY 2024, three months ending September).

• EBITDA: ₹217.21 Million (FY 2024, three months ending September).

• Profit After Tax: ₹76.67 Million (FY 2024, three months ending September).

• Pre-issue EPS: ₹4.43

• Post-issue EPS: ₹4.41

• Pre-issue P/E: 99.55x

• Post-issue P/E: 99.93x

• Industry P/E: 79.65x

Given the high P/E ratio, the valuation appears to be on the higher end compared to industry peers, signaling that the IPO may be priced for growth but lacks room for immediate upside.

Risk and Recommendation

Based on the financial performance and valuation, the Suraksha Diagnostic IPO appears to be fully priced. The GMP suggests no immediate listing gains, and the high P/E ratio relative to the industry could indicate that the company may be priced at a premium. We recommend investors avoid the IPO for listing gains or long-term investment, especially given the lack of significant growth expectations at this time.

About Suraksha Diagnostic

Suraksha Diagnostic was founded in 1992 and is known for its strong position in Kolkata’s diagnostic market, offering both pathology and radiology services under one roof. Their Promoters include Dr. Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma, who have driven the company’s success over the years.

Disclaimer

This information is based on publicly available details and should not be considered as financial advice. The Grey Market Premium (GMP) is an informal indicator and should not be used as the sole basis for investment decisions. Always conduct thorough research or consult a financial advisor before making any investment decisions.