The initial public offering (IPO) of Suraksha Diagnostic will open for subscription on Friday. The issue closes on December 3. Through the public offer, the company plans to raise nearly Rs 846 crore. Here are 10 things to know about the Suraksha Diagnostic IPO before subscribing to the issue.
1) What is the business overview of Suraksha Diagnostic?
Suraksha Diagnostic is the largest full-service, integrated diagnostic chain headquartered in East India in terms of operating income as of FY23. It offers a one-stop solution for pathology and radiology testing, as well as medical consultation services to its customers.
2) What is the industry overview of Suraksha Diagnostic?
The Indian diagnostics services market, estimated at Rs 860 to Rs 870 billion in fiscal 2024, is projected to grow at a CAGR of around 10% to 12% to reach Rs 1,275-1,375 billion by fiscal 2028. Of this, the market in eastern and north-eastern India, estimated at Rs 170-180 billion in fiscal 2024, is projected to grow at a CAGR of around 10.5% to 12.5%, reaching Rs 260-280 billion by fiscal 2028.
3) What is the current GMP of Suraksha Diagnostic?
According to market analysts, the current GMP of Enviro Infra Engineers is Rs 0, indicating no premium to the issue.
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4) What is the size of Suraksha Diagnostic IPO?
The IPO is entirely an OFS, comprising the sale of up to 19,189,330 equity shares by the selling shareholders. The promoter selling shareholders include Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma. Meanwhile, OrbiMed Asia II Mauritius Limited, Munna Lal Kejriwal, and Santosh Kumar Kejriwal are the investor selling shareholders.
5) What is the price band for the Suraksha Diagnostic IPO?
The company has fixed a price band of Rs 420-441 per share, where investors can bid for 34 shares in one lot.
6) What is the structure of Suraksha Diagnostic IPO?
About 50% of the public offer is reserved for qualified institutional buyers, 35% for retail investors, and the remaining 15% for non-institutional investors.
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7) How is the financial performance of Suraksha Diagnostic?
In FY24, Suraksha’s revenues improved to Rs 219 crore compared to Rs 190 crore in the year-ago period. Meanwhile, profit after tax grew multifold to Rs 23 crore.
8) What are the objectives of Suraksha Diagnostic IPO?
The company proposes to utilise net proceeds from the fresh issue for working capital requirements, infusion of funds in a subsidiary, EIEL Mathura Infra Engineers to build 60 MLD STP under the project Mathura Sewerage Scheme, and repayment of debt.
9) Who are the book-running lead managers for Suraksha Diagnostic IPO?
Since the IPO is an OFS, all proceeds will go to the selling shareholders.
10) When is Suraksha Diagnostic IPO’s share allotment and listing date?
The share allotment for the IPO will likely be finalised on December 4 and the company is expected to list on stock exchanges on December 6.
