The Suraksha Diagnostic IPO is a book-built issue of Rs. 846.25 crore, offering 1.92 crore shares at a price band of Rs. 420 to Rs. 441. The IPO opens on November 29, 2024, and closes on December 3, 2024, with listing scheduled for December 6, 2024. Suraksha Diagnostic, founded in 2005, provides pathology, radiology, and medical consultancy services. It has expanded its presence across Eastern India, operating 44 diagnostic centers and 120 polyclinics with over 750 doctors.

For fiscal 2024, Suraksha achieved a revenue of Rs. 222.26 crore and a PAT of Rs. 23.13 crore. The IPO is entirely an Offer for Sale (OFS), with proceeds going to shareholders. The company uses advanced technology platforms, such as Laboratory Information Management System (LIMS) and Radiology Information System (RIS), enhancing operational efficiency.

Financially, Suraksha's revenue growth is robust, with a 14.75% increase and a substantial rise in PAT by 281.32%. However, 95.48% of its revenue came from West Bengal in FY24, creating a concentration risk.

Suraksha Diagnostic  IPO has a P/E ratio of 99.54x, higher than the industry average of 79.65x, indicating potential overvaluation. While the company has strong technological and service capabilities, it faces significant competition and regulatory risks.

The lot size for retail investors is 34 shares, with investments ranging from Rs. 14,994 to Rs. 194,922. Institutional investors have a 50% share, while retail investors and non-institutional investors have 35% and 15%, respectively.

IPO Details

Issue Price: Rs. 420 - Rs. 441

IPO Size: Rs. 846.25 crore (1.92 crore shares)

Listing Date: December 6, 2024

Lot Size: 34 shares

Registrar: Kfin Technologies Limited