Suraksha Diagnostic IPO Live Updates (03 Dec 2024)
Key Risk Factors
- Shortage of Skilled Labor:
- Significant lack of full-time doctors and staff in the diagnostics industry.
- Training and retaining experienced employees is critical for sustainability.
- High Cost of Equipment:
- Constant technology upgrades require significant capital investments.
- Maintenance costs and the need for skilled technicians further increase expenses.
- Intense Competition:
- The diagnostics industry is highly fragmented with low entry barriers.
- Standalone players dominate the market, increasing competition.
Grey Market Premium (GMP)
- Current GMP: ₹0, reflecting weak investor interest.
- Listing Expectations: Flat to discount listing predicted if trends continue.
IPO Structure
- Offer for Sale (OFS): Entire IPO involves an OFS of 1.91 crore shares.
- Proceeds: The company will not receive funds; proceeds go to selling shareholders.
Company Overview
- Headquarters: Largest integrated diagnostic chain in East India (FY23 operating income).
- Services: Pathology, radiology testing, and medical consultation.
- Network:
- 1 flagship central reference lab.
- 8 satellite labs.
- 194 customer touchpoints, including 48 diagnostic centres and 146 sample collection centres.
- Presence: Operates in West Bengal, Bihar, Assam, and Meghalaya (as of March 31, 2024).
Financial Performance
- Revenue: FY22: ₹225 crore | FY23: ₹193 crore | FY24: ₹222 crore.
- Earnings Metrics:
- Average EPS: ₹3.27.
- Return on Net Worth (RoNW): 11.05%.
Valuation
- Price-to-Earnings (P/E):
- FY25 (annualized earnings): 74.87.
- FY24: 99.32.
- Conclusion: IPO appears fully priced.
Expert Opinions
- Swastika Investmart:
- Valuation is aggressive.
- Recommend avoiding the IPO.
- Anand Rathi:
- Limited market presence (focused on East India).
- Issue is overpriced; avoid recommendation.
Key Dates
- Allotment Finalization: December 4, 2024.
- Listing Date: December 6, 2024.
Subscription Details
- Overall Subscription: 25% by Day 2.
- Retail Investors: Subscribed 45%.
- Non-Institutional Investors (NIIs): Subscribed 13%.
Price Band & Lot Size
- Price Band: ₹420-₹441 per share.
- Lot Size: 34 shares per lot, and multiples thereafter.
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