Suraksha Diagnostic IPO Open, Price Band, and Closing Date

Suraksha Diagnostic IPO will open on November 29, 2024, and close on December 3, 2024. Suraksha Diagnostic Limited was founded in 1992 and it provides integrated solutions for pathology and radiology testing and medical consultation services. In this blog, we’ll go through the Suraksha Diagnostic IPO details, listing, and competitor comparison in the Indian diagnostic services market.

Suraksha Diagnostic IPO Date 2024

The key pointers for the Suraksha Clinic and Diagnostic IPO date are:

• Bidding Opening Date: November 29, 2024
• Bidding Closing Date: December 3, 2024
• Allotment Date: December 4, 2024
• Initiation of Refunds (in case of less or no allotment): December 5, 2024
• Shares Credited to Your Demat Account: December 5, 2024
• IPO Listing Date: December 6, 2024
• Listing on Exchange: NSE and BSE

Suraksha Diagnostic IPO Details

Suraksha Diagnostic IPO valuation is set at ₹846 crores with only the offer for sale component.

Here are the key details of Suraksha Clinic and Diagnostic IPO:

• Suraksha Diagnostic IPO Price Band: ₹420 to ₹441 per share
• Face Value: ₹2 per share
• Lot Size: 34 Shares
• Total Issue Size and Amount: 1,91,89,330 shares (amounting to ₹846.25 crores)
• Offer for Sale and Amount: 1,91,89,330 shares (amounting to ₹846.25 crores)

Suraksha Clinic and Diagnostic IPO Proceeds Usage

Suraksha Diagnostic IPO proceeds (minus expenses) will go to selling shareholders in the proportion of shares sold by each shareholder.

Suraksha Diagnostic IPO Reservations

Suraksha Diagnostic IPO reservations to different investors are:

• For QIBs: Not more than 50% of the offer
• For NIIs: Not less than 15% of the offer
• For Retail Investors: Not less than 35% of the offer
• As per the RHP filed by the company, Suraksha Diagnostic IPO shareholder quota is not there.

Suraksha Diagnostic IPO Lot Size

Suraksha Diagnostic IPO lot size is 34 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:

Applicant Type	Lot Size	Shares	Amount (in ₹)
Retail (Min)	1	34	₹14,994
Retail (Max)	13	442	₹1,94,922
S-HNI (Min)	14	476	₹2,09,916
S-HNI (Max)	66	2,244	₹9,89,604
B-HNI (Min)	67	2,278	₹10,04,598

Suraksha Diagnostic IPO: Promoter Holding

The current promoters and selling shareholders in Suraksha Diagnostic IPO are:

• Dr. Somnath Chatterjee
• Ritu Mittal
• Satish Kumar Verma

Dr. Somnath Chatterjee, Ritu Mittal, Satish Kumar Verma, OrbiMed Asia II Mauritius Limited, Munna Lal Kejriwal, and Santosh Kumar Kejriwal are the selling shareholders in Suraksha Clinic and Diagnostic IPO.

Suraksha Diagnostic Limited: Company Overview

Suraksha Diagnostic Limited provides X-rays, ultrasonography, magnetic resonance imaging scans, computerized tomography, and vaccination services. In FY24, the company’s market share in the diagnostics services market in East India was 1.15% to 1.30%.

As of June 30, 2024, the operational network includes the flagship central reference laboratory and 8 satellite laboratories. It has 215 customer touchpoints including 49 diagnostic centers, and 166 sample collection centers across West Bengal, Bihar, Assam, and Meghalaya.

The company’s growth strategies are strengthening its position in the core geography areas (Kolkata and the areas of West Bengal), expanding beyond the core markets, acquisitions, leveraging technology, and increasing revenue by establishing B2B and corporate partnerships.

Suraksha Clinic and Diagnostic IPO: Financial Performance

Suraksha Diagnostic Limited’s key financials for different periods are as follows:

Period Ended	30 Jun 2024	31 Mar 2024	31 Mar 2023	YoY Change
Revenue	61.85	222.26	193.69	14.75%
Profit After Tax	7.67	23.13	6.07	281.05%
Assets	314.20	300.21	281.20	6.76%
Total Borrowing	7.57	8.64	14.01	-38.33%
EBITDA	21.72	73.62	47.48	55.05%

*(in ₹ crores)

• In FY24, Suraksha Diagnostic Limited’s revenue and PAT grew by 15% YoY and 281% YoY, respectively.
• Assets grew by 7% YoY while total borrowing fell by 38% which is a good sign.
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also rose by 55% on a year-on-year basis in FY24.

Competitor Analysis of Suraksha Clinic and Diagnostic IPO

The comparison of Suraksha Diagnostic Limited’s performance with its peers in the same industry is as follows:

Particulars	Suraksha Diagnostic Limited	Dr. Lal Pathlabs Limited	Metropolis Healthcare Limited	Thyrocare Technologies Limited	Vijaya Diagnostic Centre Limited
EBITDA Margin (%)	33.66%	29.95%	24.34%	24.94%	44.70%
Return on Equity (%)	14.09%	20.35%	12.26%	13.34%	19.77%
Return on Capital Employed (%)	21.46%	51.71%	60.66%	24.99%	32.98%
RoNW (%)	14.09%	20.35%	12.26%	13.34%	19.77%
Net Debt/Equity Ratio	0.2	0	0.11	0.06	0.28
Average revenue per patient (₹)	₹1,922.44	₹806.75	₹1,006.42	₹381.59	₹1,543.11
EPS (in ₹ Basic)	₹4.43	₹43.05	₹24.95	₹13.42	₹11.62

*(For FY24 ending)

• Suraksha Diagnostic Limited’s EBITDA margin was the second-highest in the industry.
• The ROE is more than 10% while ROCE is higher than 20%, which is a good sign.
• RoNW is 14% while the net debt-to-equity ratio is less than 1 indicating less dependency on debt.
• The average revenue per patient of the company is the highest among all the players.
• EPS is the lowest which is an indication of profit made on each share.

Risk Factors in Suraksha Diagnostic IPO

Suraksha Diagnostic IPO GMP is nil as of November 26, 2024. The company is exposed to various risk factors which can affect its listing price and investor’s bidding:

1. Around 95% of revenue from operations in FY24 is concentrated in the West Bengal region and any loss of business can affect the company’s earnings.
2. Risk of suspension of the shares of the Promoter Group members as done in the past.
3. High competition in the diagnostic industry may affect the business and financial performance.
4. In FY24, 6.17% of revenue from operations was contributed by the B2B segment and the risk of non-renewal or cancellation of partnerships with hospitals and others can affect the business.
5. The company will not receive any of the IPO proceeds for growth and expansion activities.

Suraksha Clinic and Diagnostic IPO Contact Information

For inquiries related to the Suraksha Diagnostic IPO details, you can contact at the following places:

Registered Office Address: Plot No. DG-12/1, Action Area 1D, Premises No. 02-0327, New Town, Rajarhat, Kolkata 700 156 West Bengal, India
Email: investors@surakshanet.com
Company Website: https://www.surakshanet.com/

Suraksha Clinic and Diagnostic IPO Registrar Details:

Registrar Name: KFIN Technologies Limited
Phone: 91 40 6716 2222
Email: sdl.ipo@kfintech.com

For all the insights on Suraksha Diagnostic IPO and detailed expert advice, you can download the SMC ACE App or visit the SMC telegram channels. Take smart decisions and apply for this IPO easily on the SMC ACE App by opening demat account now.

FAQs

1. Who is the owner of Suraksha Diagnostics?

Dr. Somnath Chatterjee and Ritu Mittal are the two founding members and joint managing directors of Suraksha Diagnostics Limited.

2. What is the revenue of Suraksha Diagnostics?

The revenue of Suraksha Diagnostics in the Q1 of FY25 (as on June 30, 2024) was ₹61.85 crores.

3. What is the IPO price band of Suraksha Diagnostic Limited?

The IPO price band of Suraksha Diagnostic Limited is ₹420 to ₹441 per share.

References:
https://www.surakshanet.com/pdf/investor/Suraksha%20Diagnostic%20Limited-%20Red%20Herring%20Prospectus%2025-11-2024.pdf
SMC Global Securities Research Team

Author: All Content is verified by SMC Global Securities.