Suraksha Diagnostic IPO: Price, Date, Overview, And GMP

Suraksha Diagnostic IPO-Complete Overview

Suraksha Diagnostic IPO a Mainboard IPO is a book-built issue of Rs.846.25 crore (19,189,330 Cr Shares) by Suraksha Diagnostic Limited, which has been providing pathology, radiological testing, and medical consultant services since 2005 that is its establishment year.

By June 30, 2024, West Bengal, Bihar, Assam, and Meghalaya have expanded their coverage to other states with a central reference laboratory backed by eight satellite laboratories and 215 customer touchpoints, including 49 diagnostic centers and 166 sample collection centers.

In Fiscal 2024, the company's market share in Eastern India's diagnostic services market was from 1.15 to 1.30%. 

Under one roof, the company brings medical consultation services online and offline to 44 diagnostic centers, which house 120 polyclinics housing more than 750 doctors.

The operational efficiency of the above diagnostic centers is further complemented by the technology platforms and systems that the company has mentioned above for streamlining such as its Laboratory Information Management System (LIMS), fully integrated Radiology Information System (RIS), Picture Archive Communication System (PACS), and Enterprise Resource Planning System (ERP).

The Company also provides Vaccination Services and personalized Testing Packages for Disease Prediction/Early Detection. It uses digital pathology and Artificial Intelligence for blood tests. Digital Platforms are used for radiology reporting enabling all diagnostic centres for case reporting and hence reducing turnaround time significantly.

This new IPO is to be launched on 29 November 2024, and the initial public offering of this upcoming IPO will end on 03 December 2024.

Detailed Video

Suraksha Diagnostic IPO Details

The Rs.846.25 crore Suraksha Clinic and Diagnostic IPO comprises a wholly offer for sale (OFS) of 1.92 crore Shares. The IPO listing date is on December 06, 2024. Suraksha Diagnostic IPO share price is Rs.420 to Rs.441.

If you want to apply for the IPO,  Click Here to open a Demat Account.

Company Financial

The company’s revenue grew by 14.75% and PAT increased by 281.32% between FYs ended 31 March 2024 and 31 March 2023.

(Amount in Crore)

Cash Flows

(Amount in million)

Service-wise Revenue Bifurcation

(Values in millions)

Geography-wise Revenue Bifurcation

(Values in millions)

The Objective of the Issue

All proceeds shall go to the company’s Shares Holders as the offer is completely an OFS.

Peers of Suraksha Diagnostic Limited

Evaluation

The IPO price is between Rs.420 to Rs.441 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.4.43 from the last year, the resulting P/E ratio is 99.54x.  Considering the weighted EPS of Rs.3.27 for the last three years, the P/E ratio is 134.86x.

Comparative Analysis with Listed Peers

The average P/E Ratio of the industry is 79.65x.

IPO's Strengths 

• Deep internal diagnostics pipeline absorbing the sizable opportunities generated by organized diagnostic chains in fragmented diagnostic services markets of East and Northeast India.

• The integrated diagnostic service offers pathology plus radiology tests and medical consultant services all from one source.

• Fully technologically invested in the clinical infrastructure.

• Top-notch quality that drives up individual consumer business share and high retention.

• Management with relevant industry experience.

IPO’s Weaknesses 

• Suraksha Clinic and Diagnostic in its RHP mentioned that 95.48% of its revenue from operations in FY24 came from West Bengal. Any impairment of this revenue would be detrimental to the business. The company added that any contraction in business in the region would be detrimental to its business.

• The company faces competition in India, and the inability to compete with other players in healthcare services may hurt its business.

• The company is subject to legal liabilities, operational liabilities, reputational liabilities, medical and legal claims, regulatory actions, and all other possible liabilities arising out of healthcare services. It could also become liable for claims of malpractice and medical negligence.

• It carries out its business with the reliance on information technology systems and third-party platforms and any disruption on the side of third-party platforms may have adverse consequences on their business.

Suraksha Diagnostic IPO GMP

Suraksha Diagnostic IPO GMP today has not started yet, with a price band of Rs.441, the estimated Suraksha Diagnostic IPO listing price is Rs.441 (as of 26 November 2024).

Suraksha Clinic IPO Timetable (Tentative)

The Suraksha Diagnostic IPO date is from 29 November to 03 December, with IPO allotment on 04 December, and refund initiation on 05 December. The IPO listing date is on 06 December 2024.

IPO Other Details 

The Suraksha Diagnostic IPO Size is 19,189,330 Shares, with a face value of Rs.2 per Share it will be listed at BSE and NSE.

Suraksha Diagnostic IPO Lot Size

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (34 Shares) amounting to Rs.14,994 and 13 Lots (442 Shares) amounting to Rs.194,922 respectively, while for HNI investors, the minimum Lot is 14 (476 Shares) amounting to Rs.2,09,916.

IPO Reservation

Promoters and Management of Suraksha Diagnostic Limited. 

• Dr. Somnath Chatterjee

• Ritu Mittal

• Satish Kumar Verma

IPO Lead Managers

• ICICI Securities Limited

• Nuvama Wealth Management Limited

• SBI Capital Markets Limited

Dividend Policy

The company has not paid any dividends in the last three years. 

Conclusion

The Suraksha Diagnostics IPO indicates the potential that the organization has to grow within the diagnostics sector, underpinned by strong technological support and a wide service network. Nevertheless, the company is at high stakes concerning its valuations, as well as the high dependency on revenue from West Bengal. Indeed, though the expansion efforts of the company appear to be promising, potential investors will have to critically weigh the competition and financial prospects before putting in their money.

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP.

DISCLAIMER:

DISCLAIMER: NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing. 

Click Here to stay updated with the Upcoming IPOs.

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.Hope you loved the IPO analysis. Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.

b