Suraksha Diagnostic IPO 2024: Key Dates, Price Band, and Details
Suraksha Diagnostic Limited IPO: 10 Key Things to Know Before Investing
Suraksha Diagnostic Limited, a leading diagnostic service provider in Eastern India, is gearing up to launch its ₹846.25 crore. The issue is entirely an offer for the sale of 1.92 crore shares. This IPO provides an excellent opportunity for investors looking to participate in India’s growing healthcare diagnostics sector.
Here are 10 key things you should know before investing in the Suraksha Diagnostic Limited IPO:
What makes Suraksha Diagnostic Limited a good opportunity?
India’s diagnostics industry is experiencing rapid growth, driven by increased health awareness and advancements in medical technology. Suraksha Diagnostic Limited is well-positioned to benefit from this trend with its extensive network in Eastern India.
The company operates 49 diagnostic centres and 166 franchised sample collection centres, offering a comprehensive range of pathology, radiology, and consultation services. Leveraging a hub-and-spoke model, Suraksha Diagnostic provides accessible, high-quality diagnostics even in remote areas, making it a leader in Eastern India’s healthcare market.
What are the IPO dates, price band, and issue size?
Here is the key information regarding the Suraksha Diagnostic Limited IPO:
IPO Dates: November 29–December 3, 2024
Price Band: ₹420 – ₹441 per share
Total Issue Size: ₹846.25 crore
Face Value: ₹2 per share
Listing Exchange: BSE, NSE
Book Running Lead Managers: ICICI Securities Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited
What is the minimum investment for the Suraksha Diagnostic Limited IPO?
The minimum investment required to apply for the IPO is ₹14,280 for one lot of 34 shares. To increase the chances of allotment, it is advisable to apply at the upper price band, which would require ₹14,994.
What does the company do?
Suraksha Diagnostic Limited is a diagnostics service provider, offering pathology, radiology, and consultation services. The company operates primarily in Eastern India, with over 95% of its revenue coming from West Bengal.
Its network includes:
- A central reference laboratory
- 8 satellite labs
- 215 customer touchpoints
Suraksha conducted 5.98 million tests for 1.14 million patients in FY24, with 53.30% of revenue from pathology and 46.03% from radiology. Their hub-and-spoke model ensures efficient service delivery, while polyclinic chambers at diagnostic centres enhance patient convenience and drive cross-selling opportunities.
What is the IPO objective?
The IPO is a complete Offer for Sale (OFS), meaning the company will not receive any proceeds. Instead, the funds raised will go to the selling shareholders, including the promoters Dr. Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma.
How much is the IPO reservation for retail and other investors?
The IPO allocation is as follows:
Not more than 50% for Qualified Institutional Buyers (QIBs).
Not less than 15% for non-institutional investors (NIIs).
Not less than 35% for retail investors.
What are the key strengths and risks of investing in the Suraksha Diagnostic Limited IPO?
IPO Strengths:
Regional Leadership: Strong market presence in Eastern India.
Comprehensive Services: Offers 2,300+ tests covering various specialities.
Technological Edge: Advanced infrastructure and trained personnel.
Growth Plans: Expanding in adjacent geographies of Eastern and Northeastern India.
IPO Risks:
Regional Dependence: 95% of revenue is concentrated in West Bengal.
Intense Competition: Faces challenges from other diagnostics and healthcare providers.
Limited B2B Segment: Only 6.17% of revenue comes from institutional clients, making the company reliant on B2C.
Can you share the financial performance of Suraksha Diagnostic Limited?
Suraksha Diagnostic Limited has shown consistent financial performance. Here’s a snapshot:
| Period Ended | 31 Mar 2024 | 31 Mar 2023 | 31 Mar 2022 |
| Assets (₹ Cr) | 300.21 | 281.20 | 275.96 |
| Revenue (₹ Cr) | 222.26 | 193.69 | 225.77 |
| Profit After Tax (₹ Cr) | 23.13 | 6.07 | 20.82 |
What is the allotment date for the Suraksha Diagnostic Limited IPO?
Allotment Date: December 4, 2024
Credit of Shares to Demat Accounts: December 5, 2024
IPO Listing Date: December 6, 2024
Should you invest in Suraksha Diagnostic Limited IPO?
Suraksha Diagnostic Limited is a strong player in Eastern India’s diagnostics market, with a solid business model and growth potential. However, its regional concentration and reliance on B2C revenue pose risks.
Investors are encouraged to evaluate their risk appetite and long-term investment goals before subscribing. The IPO represents an opportunity to invest in a healthcare company with a proven track record and ambitious expansion plans.
