The ₹846.25 crore IPO of Suraksha Diagnostic Limited is set to open for subscription on November 29, 2024, and will close on December 3, 2024. With a price band of ₹420-₹441 per share, the IPO aims to raise funds through an offer for sale, with no proceeds from a fresh offer going to the company.
Bajaj Broking recommends subscribing to the IPO, citing Suraksha’s strong presence in eastern India and its technological edge. The company operates a vast diagnostic network, including a flagship reference lab, eight satellite labs, and 215 customer touchpoints, supported by advanced systems like Laboratory Information Management Systems (LIMS) and AI-driven diagnostics.
Suraksha’s financials reveal a mixed performance. In FY24, it recorded a net profit of ₹23.13 crore on revenue of ₹2,222.6 crore. However, FY23 saw a decline in revenue and profit. The company’s PE ratio of 74.87 (based on FY25 annualized earnings) suggests that the IPO is fully priced.
Key risks include overdependence on West Bengal, high operational costs, and intense competition. Yet, analysts highlight its strategic market position and long-term growth prospects, driven by increasing healthcare demands and a shift toward organized diagnostic chains.
The IPO allotment will be finalized on December 4, 2024, with the shares expected to list on the NSE and BSE on December 6, 2024. Retail investors can apply in lots of 34 shares, with 35 per cent of the offer reserved for them.