Suraksha Diagnostics IPO: Subscription Opens Nov 29, Check Allotment, Listing, and GMP Details

Based out of Kolkata, Suraksha Diagnostics Limited is set to launch its IPO on November 29, 2024, with the subscription period running until December 3, 2024. The company aims to raise Rs.846.25 crores through the IPO, which is an entirely offer-for-sale (OFS) of 1.92 crore shares, providing existing shareholders an opportunity to liquidate their holdings.

Listing, Allotment, and Investment Details

The allotment of shares is expected to take place on December 4, 2024; following that, it will be listed on the bourses on the exchanges tentatively on Friday, December 6, 2024, as per schedule.
The price band set for the IPO is Rs. 420 to Rs. 441 per share. An investor can apply for a minimum of 34 shares, and the minimum amount required for investment by retail investors is Rs. 14,994. Similarly, the minimum lot size investment for small non-institutional investors is 14 lots, which is 476 shares, amounting to Rs 209,916, and for big non-institutional investors, it is 67 lots, that is, 2,278 shares, amounting to Rs. 1,004,598. This IPO provides an opportunity to invest in a leading diagnostic chain with a strong presence in the healthcare industry.

Suraksha Diagnostic Limited Recent Financial Performance

According to a report by Bajaj Broking, the company's financial performance has seen significant fluctuations over the past three fiscal years. In FY22, it reported a total income of Rs. 225.77 crore and a net profit of Rs. 20.82 crore, showing strong profitability. However, FY23 saw a setback, with total income falling to Rs.193.69 crore and net profit shrinking to Rs. 6.07 crore. By FY24, the company managed a recovery, achieving a total income of Rs.222.26 crore and a net profit of Rs.23.13 crore. In Q1FY25, ending June 30, 2024, the company recorded a total income of Rs.61.85 crore and a net profit of Rs.7.67 crore, undergoing steady progress despite economic challenges.

From a valuation perspective, the company has averaged an EPS of ₹3.27 and a Return on Net Worth (RoNW) of 11.05% over the past three years. The Price-to-Earnings (P/E) ratio, based on annualized FY25 earnings, stands at 74.87, while based on FY24 earnings, it is 99.32, signaling that the IPO is fully priced and reflects limited near-term upside potential.

In a similar fashion, RoCE was 23.11% in FY22, which dropped to 9.05% in FY23, rebounded to 21.46% in FY24, and moderated to 6.32% in Q1 FY25. While PAT margins remain undisclosed, the decline in RoCE during the latest quarter suggests a cautious outlook.

Suraksha Clinic and Diagnostic IPO GMP Update

The shares of Suraksha Clinic and Diagnostics are not showing any premium or discount in the grey market, indicating a potential listing at par with the issue price. The absence of a grey market premium (GMP) suggests cautious sentiment among investors about the stock's immediate post-listing performance. However, it's important to note that grey market trends are unofficial and not always a reliable indicator of listing performance.

About Suraksha Diagnostic Limited

Incorporated in 2005, Suraksha Diagnostic Limited offers pathology, radiology testing, and medical consultancy services. The company offers its customers online and offline medical consultation services under one roof. The operation of the diagnostic centers is supported by technology platforms such as its Laboratory Information Management System, its fully integrated Radiology Information System, its Picture Archive Communication System and its Enterprise Resource Planning System. The company offers vaccination services and customized testing packages for disease prediction/early detection.