Star Imaging and Path Lab IPO

About Star Imaging and Path Lab IPO

The offer consists of both a fresh issue and an offer for sale component. The fresh issue will include 39,20,000 equity shares of face value ₹10 aggregating to ₹55.66 crores. The offer for sale portion 9,72,000 equity shares of face value ₹10 aggregating to ₹13.80 crores. The total number of shares and aggregate amount are 48,92,000 and the total issue size is ₹69.47 crores.

Star Imaging and Path Lab Limited offers a comprehensive range of diagnostic imaging services and clinical laboratory tests, including both routine and specialised studies and profiles. These services are essential for the prediction, early detection, diagnostic screening, confirmation, and monitoring of diseases. They are also collaborating with the Government of Uttar Pradesh, Delhi, and Nashik to provide CT scanners and associated equipment, along with comprehensive installation and maintenance of CT scan facilities. Their services include both skilled and unskilled labour to ensure high-quality operation and support for these healthcare facilities.

Objectives of Star Imaging and Path Lab IPO

• To meet working capital requirement
• Repayment/prepayment of certain borrowings availed of by the company
• Funding the capital expenditure towards purchase of refurbished medical equipment in running facilities
• General corporate expenses
• Issue expense

Industry Outlook

India’s fast-growing healthcare industry has become one of the leading contributors to the economy. A combination of economic and demographic factors is driving healthcare demand in the country. Factors such as an ageing population, a growing middle class, increasing incidence of lifestyle diseases, and the adoption of technology are some of the key drivers. The healthcare industry grew at 10–11% CAGR between FY17 and FY24 to ~₹9,50,000–10,50,000 crores.

The pathology segment, estimated to have grown steadily at a CAGR of 8–9% over FY17 to FY24, is estimated to clock a CAGR of 9–11% over FY24 to FY28. This trajectory suggests an increasing demand for pathology diagnostic services, potentially driven by factors such as rising chronic disease prevalence and improved diagnostic technologies. Similarly, the radiology segment, estimated to have grown at a CAGR of ~9.5–10.5% over FY17 to FY24, is expected to rise further at a CAGR of 11-13% over FY24 to FY28, indicating robust growth potential led by technological advancements and heightened demand for diagnostic imaging across medical specialties. Overall, the analysis underscores positive growth prospects for both pathology and radiology segments in the Indian diagnostic market, driven by evolving healthcare needs and technological innovation.

Company Information

Star Imaging and Path Lab Limited operates a diagnostic testing network, NABL-accredited, delivering pathology, radiology, cardiology, and neurology services in Delhi (B2C, B2B & B2G model), Uttar Pradesh (B2G model), and Nashik (B2G model) regions of India. The company started its journey from 1978 as a proprietorship under the name Janta X-Ray Clinic and was providing X-ray and basic pathology tests using manual methods. Over the years, they have upgraded their services, equipment, and diagnostic technologies to incorporate the latest advancements in medical science, ensuring the care and improved patient outcomes. This vision led to the establishment of Star Imaging and Path Lab Private Limited in 2004, as a private limited entity, with a vision to offer pathology, radiology, cardiology, and neurology services under one roof. As of their expansion, they acquired the businesses of Janta X-Ray Clinic, M/s Star Imaging & Path Lab, and M/s Star Health Care in 2011.

Their diagnostic imaging and radiology services encompass X-rays, computed tomography (CT) scans, magnetic resonance imaging (MRI) scans, ultrasounds, bone mineral densitometry, and mammography. In the pathology segment, their services include biochemistry, haematology, clinical pathology, histopathology, cytopathology, microbiology, serology, and immunology.

They also operate a teleradiology hub, which is equipped with a full suite of diagnostic imaging equipment and supported by a skilled team of radiologists. This centralised facility provides significant operational efficiencies and scalability, ensuring quality diagnostic services are delivered consistently across the network.

Strengths of Star Imaging and Path Lab IPO

• Accurate diagnosis: Their diagnostic centres are equipped with advanced technology and medical equipment, such as MRI, CT scans, X-rays, and laboratory tests, that help provide accurate and timely diagnoses.

• Specialised expertise: Many diagnostic centres employ medical professionals who specialise in various fields like radiology, pathology, and laboratory science, ensuring high-quality testing and interpretation.

• Proper sample collection and processing procedures: Diagnostic centres have well-defined and standardised procedures for the collection, handling, and processing of samples (such as blood, urine, or tissue).

Risks of Star Imaging and Path Lab IPO

• The company, directors and promoters are parties to certain legal proceedings. Any adverse decision in such proceeding will have a material effect on business, results of operations and financial condition.

• Any failure in procuring equipment or recall of existing testing equipment, test kits, and reagents.

• The company has reported negative cash flows in the past. If they report negative cash flows in the near future, the business will be impacted.

• Any non-renewal or cancellation of their arrangements with their institutional customers, including hospitals, and Public-Private Partnership ("PPP") contracts.

• Any loss of business in Delhi and Uttar Pradesh which generated 100% of their revenue from operations in fiscal 2025.

• Failure or malfunction of their equipment.

• Failure to introduce new tests, services and technologies or acquire new or improved equipment.

Anchor Investor Bidding Date: 07 August 2025

Registrar: KFin Technologies Limited Book Running Lead Managers: Share India Capital Services Private Limited

*The Company and the Promoter Selling Shareholder may, in consultation with the Book Running Lead Manager, consider participation by Anchor Investors in accordance with the SEBI ICDR Regulations. The Anchor Investor Bid/ Offer Period shall be one Working Day prior to the Bid/Offer Opening Date.

Business Model

The company earns its revenue through offering a comprehensive range of diagnostic imaging services and clinical laboratory tests, including both routine and specialised studies and profiles.

Company Growth Trajectory

The company's EBITDA margin increased significantly from 9.95% in FY 2022-23 to 28.46% in FY 2023-24, and further sustained a healthy level of 27.53% in H1 FY 2024-25 (as of 30 September 2024).

Their total revenue increased by ₹3.81 crores, i.e., 4.77% to ₹83.79 crores for the financial year 2024-25 from ₹79.97 crores for the financial year 2023-24. Their revenue from operations increased by ₹4.72 crores, i.e., 5.99% to ₹83.50 crores for the financial year 2024-25 from ₹78.78 crores for the financial year 2023-24. Revenue from operations increased primarily because of an increase in footfall of patients in existing centres and increase in institutional centres (B2B) as compared to the previous financial year.

Their other income decreased by ₹0.90 crores, i.e., 75.86% to ₹0.29 crores for the financial year 2024-25 from ₹1.19 crores for the financial year 2023-24. The decrease was mainly due to profit from sale of asset of ₹0.99 crores booked in financial year 2023-24.

Net Profit After Tax (PAT) increased by ₹3.50 crores, i.e., 28.12% to ₹15.96 crores in the financial year ended 31 March 2025 from ₹12.45 crores in the financial year ended 31 March 2024. Profit After Tax increased due to increase in total revenue and decrease in total expense.

Company Market Position

As of 31st March, 2025, the company’s Total Income, Profit After Tax, and EBITDA stood at ₹83.787 crores, ₹15.955 crores, and ₹28.572 crores, respectively.

How to check allotment status of Star Imaging and Path Lab IPO?

1. Visit the Registrar's Website To check the IPO allotment status for Star Imaging and Path Lab Limited IPO, visit the official website of KFin Technologies Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

2. Check on the Bombay Stock Exchange Website The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps

• Select 'Equity' from the dropdown menu
• Choose 'Star Imaging and Path Lab Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search'

Your Star Imaging and Path Lab Limited IPO allotment status will be displayed.

3. Verify on the National Stock Exchange Website The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Star Imaging and Path Lab Limited IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Star Imaging and Path Lab Limited IPO bid and allotment details will be displayed.

How to apply for Star Imaging and Path Lab IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.