Suraksha Diagnostics Latest Subscription and GMP :Today is the last day for public subscription for the IPO of Suraksha Diagnostic, a company providing pathology and radiology testing services. On its third day, this IPO has been subscribed by about 35 percent till 11:30 am. There is no movement regarding this in the gray market. The company has fixed the price band of Rs 420 to Rs 441 per share for its Rs 846 crore IPO. The company’s stock will be listed in the stock market on 6 December 2024. Well, brokerage houses are also not very positive on this.
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Suraksha Diagnostics IPO: Subscription Status
Suraksha Diagnostic’s IPO has been subscribed 35 percent till 11:30 am on the third day. There is a 35 percent quota reserve for retail investors in the IPO and so far it has been filled 0.58 times or 58 percent. There is a 50 percent quota reserve for Qualified Institutional Bias i.e. QIB in the IPO and till now it is zero percent filled. Whereas for non-institutional investors, there is a 15 percent quota reserve in the IPO and till now it has been filled 0.27 times i.e. 27 percent.
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Swastika Investmart : Avoid Rating
Brokerage house Swastika Investmart has given ‘Avoid’ rating on the IPO of Suraksha Diagnostics. The brokerage says that the financial performance of the company is not consistent. Despite recent signs of improvement, the company’s performance in this regard in the financial year 2023 was not good. The valuation is also aggressively high. Investors may find better opportunities in other listed companies in this sector.
Au Capital: Subscribe Rating
Brokerage house AU Capital has given Subscribe rating on the IPO of Suraksha Diagnostics. The brokerage says that the company is one of the major players in the medical diagnostic industry in Eastern India. The demand for quality health diagnostics along with the facility of home collection for the elderly and sick makes companies like SDL a preferred choice among patients. A well-built medical infrastructure coupled with qualified health professionals wins the trust of its customers.
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Anand Rathi Research: Avoid Rating
Brokerage house Anand Rathi Research has given ‘Avoid’ rating on the IPO of Suraksha Diagnostics. The brokerage says that at the upper price band the company is valued at 99.3 times its FY24 earnings and 75.0 times its annualized FY25 earnings. After the issuance of equity shares, the company has a market cap of Rs 2296.76 crore with a market cap to sales ratio of 10.5x based on FY24 earnings. The company’s operations are limited to Eastern India, due to which the market scope is limited. The valuation of the issue is also high.
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Outright Offer for Sale (OFS)
Suraksha Diagnostic’s IPO is completely an Offer for Sale (OFS), in which 1.92 crore shares are being sold. The promoters who sold shares include Somnath Chatterjee, Ritu Mittal and Satish Kumar Verma. At the same time, Orbimed Asia II Mauritius Limited, Munna Lal Kejriwal and Santosh Kumar Kejriwal are the investors who sold their stake in the company. Suraksha Diagnostics raised Rs 253.87 crore from anchor investors on Thursday ahead of the IPO. The company has allotted 57 lakh shares to 16 anchor investors at Rs 441 per share.
company financials
Suraksha Diagnostics’ revenue growth has remained almost stable in the last few years. The company’s margin has increased from 28% in FY22 to 32% in FY24. The company’s net profit has grown at a CAGR of 5.4% over FY22-24. The company saw a decline in revenue and profit in FY23. According to the company’s red herring prospectus, profitability of diagnostic centers across India declined in FY23 and remained range bound in FY24. The company has 8 satellite laboratories and one central laboratory with 215 customer touchpoints. This includes 49 diagnostic centers and 166 sample collection centers by June 2024.
(Disclaimer: The view or advice on the share is given by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert opinion before investing.)
