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Unlisted shares of Suraksha Diagnostic Ltd continued to trade at Rs 441 apiece in the grey market on Friday, which is the same as its issue price. It means zero GMP on its unlisted shares in the grey market.
Suraksha Diagnostic IPO.
Suraksha Diagnostic IPO GMP: The initial public offering of Suraksha Diagnostic Ltd has been opened on Friday. The Rs 846.25-crore IPO will be concluded on Tuesday, December 3. Till 2:15 pm on the first day of bidding on Friday, the IPO received a 0.09 times subscription garnering bids for 1,34,32,533 shares as against 12,14,344 shares on offer.
The price band of the IPO has been fixed in the range of Rs 420 to Rs 441 apiece.
So far, the portion for non-institutional investors attracted 0.03 times subscription, while the retail investors category has fetched 0.17 times subscription.
Suraksha Diagnostic IPO: Key Dates
The IPO will remain available for subscription between November 29 and closed on December 3. Its allotment will take place on December 4. Suraksha Diagnostic’s shares will be listed on both BSE and NSE on December 6.
Suraksha Diagnostic IPO GMP Today
According to market observers, unlisted shares of Suraksha Diagnostic Ltd continued to trade at Rs 441 apiece in the grey market on Friday, which is the same as its issue price. It means zero GMP on its unlisted shares in the grey market.
The GMP is based on market sentiments and keeps changing. ‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Suraksha Diagnostic IPO: Analysts’ Recommendations
Axis Capital in its IPO note saidd, “Suraksha Diagnostics is the most diversified in terms of pathology and radiology among the compared peers as it derived 53.30% of its revenue from pathology and 46.03% from radiology for FY24.”
The company’s revenues from operations have grown at a CAGR of 20.83 per cent between FY2022-2024. For FY2024 the company reported revenues from operations at Rs 218.71 crore, with EBITDA margins of 33.66 per cent, PAT of Rs 23.13 crore. The company’s net debt to equity ratio stood at 0.20x for FY2024, it added.
SBI Securities in its IPO said, “At the upper price band of Rs 441, Suraksha Diagnostic is valued at FY24 P/E and EV/Sales multiple of 96.1x/5.1x respectively based on its post issue capital. The company is an integrated diagnostics provider offering one-stop solution for pathology & radiology testing and medical consultation services. As of FY24, Suraksha garnered a market share of nearly 1.15%-1.30% in its core eastern India market and aims to further expand its presence in the adjacent northeastern markets.”
The company’s operations in core geography, extensive network and reputation will aid in expanding its business coupled with industry growth which is expected to grow from Rs 860-870 bn to Rs 1,275-1,375 bn by FY28, experiencing a CAGR of 10-12% between FY24-FY28, it added.
Another brokerage firm Bajaj Broking has granted a ‘subscribe for long term’ recommendation.
It said, “If we annualise FY25 earnings to the post-IPO fully diluted equity base, the asking price reflects a P/E of 74.87. Based on FY24 earnings, the P/E stands at 99.32, indicating the IPO is fully priced. For the reported financial periods, while PAT margins are not disclosed in the offer document, the RoCE margins were 23.11% (FY22), 9.05% (FY23), 21.46% (FY24), and 6.32% (Q1-FY25).”
Suraksha Diagnostic IPO: More Details
The IPO comprises a complete offer-for-sale (OFS) of 19,189,330 equity shares worth Rs 846.25 crore (at the upper price band). All proceeds from the IPO will go to the selling shareholders — promoters (Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma) and investors (OrbiMed Asia II Mauritius Ltd, Munna Lal Kejriwal, and Santosh Kumar Kejriwal).
The price band of the Suraksha Diagnostic IPO has been set at Rs 420 to Rs 441 per share. The minimum lot size for an application is 34 shares. The minimum amount of investment required by retail investors is Rs 14,994. The minimum lot size investment for small NII is 14 lots (476 shares), amounting to Rs 209,916, and for big NII, it is 67 lots (2,278 shares), amounting to Rs 10,04,598.
At the upper end of the price band, the company’s market valuation stands at approximately Rs 2,300 crore.
ICICI Securities Limited, Nuvama Wealth Management Limited and SBI Capital Markets Limited are the book running lead managers of the Suraksha Diagnostic IPO, while Kfin Technologies Limited is the registrar for the issue.
