About Suraksha Diagnostic

Established in 1992, Suraksha Diagnostic operates as a trusted brand in Kolkata, offering both pathology and radiology services under one roof. The company has a strong foothold in eastern and northeastern India, driven by its long-standing reputation for quality services and extensive network.

IPO Details

• Type: Book Built Issue
• Issue Size: ₹846.24 Crores (Offer for Sale of 191.89 lakh shares)
• Price Band: ₹420 to ₹441 per share
• Lot Size: 34 shares
• Market Capitalization (at ₹441): ₹2,296.76 Crores
• Subscription Dates: November 29 to December 03, 2024
• Listing Date (Tentative): December 06, 2024
• Lead Managers: ICICI Securities, Nuvama Wealth Management, SBI Capital Markets
• Registrar: KFin Technologies

Objectives of the IPO

Suraksha Diagnostic will not receive proceeds from this offer, as it is entirely an Offer for Sale. Funds will go to selling shareholders in proportion to their stakes.

Financial Performance

The company has shown steady revenue growth, but its profitability metrics remain inconsistent.

Key Ratios and Valuation

• EPS Pre-Issue: ₹4.43
• EPS Post-Issue: ₹4.41
• P/E Ratio: Pre-Issue: 99.55x | Post-Issue: 99.93x (Industry P/E: 79.65x)
• ROCE (FY24): 21.46%
• ROE (FY24): 14.09%

While the IPO is fully priced, its valuation appears higher than the industry average, limiting scope for listing gains.

Grey Market Premium (GMP)

The GMP for Suraksha Diagnostic IPO stands at ₹0, reflecting low demand in the grey market. This aligns with the company's financials and valuation, suggesting muted listing gains.

Subscription Status

As of 5:00 PM on December 03, 2024:

• Overall Subscription: 1.26x
  • Retail: 1.58x
  • HNI: 1.12x
  • QIB: 1.05x

How to Check Allotment Status

1. Via Registrar Website:

   • Visit the KFin Technologies website.
   • Select "Suraksha Diagnostic IPO" from the dropdown.
   • Enter your application number, PAN, or DP Client ID.
   • Submit to view allotment status.

2. Through BSE:

   • Visit the BSE website's IPO allotment section.
   • Provide required details and submit to view your status.

Allotment finalization is expected on December 04, 2024.

Investment Recommendation

Given Suraksha Diagnostic’s financial performance and high valuation, investors are advised to avoid this IPO for both listing gains and long-term investment. While the company has strong regional dominance, its inconsistent profitability and high P/E ratio make it less attractive compared to peers.

The Upcoming IPOs in this week and coming weeks are Nisus Finance, Emerald Tyre Manufacturers, Jungle Camps, Purple United, Rosmerta Digital and Avanse Financial.For more details on upcoming IPOs, you can visit our page at Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay updated with the latest news on IPO updates on Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News - Finance Saathi.Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.Start your Stock Market Journey and Apply in IPO by opening a Free Demat Account in Choice Broking FinX.