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₹ 14994 / 34 shares

IPO Details

RHP/DRHP

Issue Date

29 Nov - 3 Dec'24

Investment/lot

₹ 14994

Price Range

420 - 441

Lot Size

34

IPO Size

₹ 846.25 Cr

IPO Listing Details

Listing On

6 Dec'24

Issue Price

441

Listed Price

₹ 438

Retail Gain/Listing Gain

-0.68%

Start date

End date

Allotment of bids

Refund Initiation

Listing on exchange

Suraksha Diagnostics Limited IPO is an IPO of ₹846.25 crores. It consists of an offer for sale of 1,91,89,330 equity shares. The IPO will open on Nov 29,2024 and close on Dec 03,2024. Anchor bidding will take place on Nov 28, 2024 and shares will be credited on Dec 04, 2024. The initiation of refunds will take place on Dec 05, 2024.

Particulars Value
Upper Price Band
₹441
Existing Shares To be sold
19189330 shares
Market Cap
₹2293.2 crores
EPS
4.43
IPO Lot Size Min shares Amount
IPO min lot size - retail
34
₹14994
IPO max lot size - retail
442
₹194,922
SHNI(Min)
476
₹209916
SHNI(Max)
2,244
₹989,604
KPIs Suraksha Diagnostics Dr Lal Path labs Metropolis Healthcare Thyrocare Technologies
Revenue from Operations
2,187.09
22,266
12,077.09
5,723.90
Restated profit for the year
231.27
3,623
1,284.56
694.90
EBITDA
736.18
6668.08
2,939.77
1427.40
EBITDA Margin
33.66
29.95%
24.34%
24.94%
Return on equity
14.09
20.35%
12.26%
13.34%
Net debt/equity
0.20
0.00
0.11
0.06
EBITDA per patient
647.10
241.60
244.98
95.16

The anchor investors’ bid opens on Nov 28, 2024. The company may allocate up to 60% of the QIB portion to anchor investors, out of which one third will be allocated to Mutual Funds.

  • ICICI Securities Limited
  • Nuvama Wealth Management Limited
  • SBI Capital Markets Limited

The retail portion of the Suraksha Diagnostics Limited IPO consists of not less than 35% of the net offer.

Suraksha Diagnostics is the largest full-service and integrated diagnostic chain headquartered in East India, by operating income as of FY2023. (Source: CRISIL Report). They also reported the highest compounded annual growth rate (CAGR) of 20.87% (non-COVID revenues) between FY 2022 and 2024 among peers such as Agilus Diagnostics Limited, Dr. Lal Pathlabs Limited, Metropolis Healthcare Limited and Thyrocare Technologies Limited. (Source: CRISIL Report).

Business Model:

The diagnostics company earns its revenue from the following sources:

They offer 2300+ tests that cover a range of specialties and disciplines. They include:

a) 788 routine pathology tests ranging from basic biochemistry and hematology to 647 specialized pathology tests such as advanced biochemistry, histopathology, and molecular pathology, and

b) 748 basic/intermediate radiology tests ranging from basic x-rays, ultrasonography (USG), and computerized tomography (CT) scans

c) 104 advanced radiology tests such as magnetic resonance imaging (MRI) scans and specialized CT scans, as of March 31, 2024

d) They also offer omni channel medical consultation services via online and offline modes to their customers under a single roof through 43 diagnostic centres which house 120 polyclinic chambers hosting 750+ doctors, as of March 31, 2024

Financials: Suraksha Diagnostics’ revenue increased to ₹219 crores in 2024, up from ₹190 crores reported in 2023. Their profit also grew to ₹23 crores in 2024.

Expansion: The company already has a network of 48 diagnostic labs and 8 satellite laboratories. In addition to that, it plans to open 10-15 new centres and 4-6 satellite labs across India.

Partnerships: The diagnostics chain has also tied up with Cluegenix to develop Indian protocols for malignancies.

Automation: Suraksha has a fully automated robotic lab, and aims to be a world-class lab in Southeast Asia.

Suraksha Diagnostics is the largest full-service and integrated diagnostic chain headquartered in east India, by operating income as of FY23. (Source: CRISIL Report).They also reported the highest compounded annual growth rate (CAGR) of 20.87% (non-COVID revenues between FY2022 and FY24) among peers which include Agilus Diagnostics Limited, Dr. Lal Pathlabs Limited, Metropolis Healthcare Limited and Thyrocare Technologies Limited.

Objectives of the IPO:

Carry out the Offer for Sale

Achieve the benefits of listing the Equity Shares on the Stock Exchange

Subscription Details:

Qualified Institutional Buyers: 50%

Non-Institutional Buyers: 15%

Retail: 35%

Potential Benefits for investors:

  • Suraksha Diagnostics Limited is the largest full-service and integrated diagnostic chain by operating income as of Fiscal 2023. (Source: CRISIL Report). By investing in Suraksha Diagnostics Limited, the investor can be a part of the growth story of the largest diagnostics chain by operating income.

  • Many key promoters and a promoter company are exiting. Hence, it presents investors a chance to invest in freed up shares of the company.

Presentation of key financial metrics and indicators to assess Suraksha Diagnostics Limited's financial health.

Metric Fiscal Year 2024 Fiscal Year 2023 Fiscal Year 2022
Revenue from Operations
2,187.09
1901.34
2231.93
Total Equity and liabilities
3002.07
2811.95
2759.59
Return on Average Net Worth
14.09%
4.32%
15.38%

Comprehensive financial data, including revenue, profit/loss statements, EBITDA, and other critical metrics.

Particulars (in Rs. million)

Particulars (in Rs. million)

Particulars (in Rs.Million) As of 31st March, 2023 As of 31st March, 2022 As of 31st March, 2021
Total Income
2,222.60
1,936.87
2,257.68
Profit/(Loss) before tax
322.32
67.48
280.12
Net profit/(loss)
231.27
60.65
208.24
EPS%
4.43
1.22
3.91
EBITDA
736.18
474.79
652.53
Name of Promoter Designation Equity Percentage
Dr. Somnath Chatterjee
Joint Managing Director
7.74%
Ritu Mittal
Ritu Mittal
18.50%
Satish Kumar Verma
Promoter and Executive Director
15.68%

Largest diagnostic chain with a dominant position in eastern India well positioned to leverage high growth opportunity for organized diagnostic chains in the fragmented diagnostic services markets in eastern and northeastern India

The diagnostics chain is the largest full-service and integrated diagnostic chain headquartered in east India, by operating income as of Fiscal 2023. (Source: CRISIL Report).The company also reported the highest compounded annual growth rate (CAGR) of 20.87% (non-COVID revenues) between FY22 and FY24 among peers

Track record of profitability and consistent financial performance

The company achieved a profitability of ₹23 crores in FY24. Among the peers considered in the CRISIL Report, Suraksha diagnostics reported the highest CAGR in profit after tax and EBITDA of 5.38% and 6.22% between FY22 and FY24. (Source: CRISIL Report).

Well-invested and technologically advanced clinical infrastructure and trained personnel ensuring high quality and reliable diagnostic services

Suraksha diagnostics has been at the forefront of technology in diagnostics. Their strong technical capability and ability to adopt to the latest technologies in the diagnostic industry have ensured that their patients benefit from the adopted technologies and receive high quality and reliable diagnostic services.

Dependency on West Bengal for 95.48% of revenue exposes the company to regional risks that could adversely impact operations and financial performance

  • Any major outbreak of a health epidemic may affect their workforce and in turn affect their business
  • The company significantly depends on third party vendors and suppliers to provide them testing equipment, test kits, and reagents, and any failure in procuring such equipment or recall of existing testing equipment, test kits, and reagents could adversely affect their business, results of operations and financial condition.

Strengthen their position in their core geography i.e. Kolkata and the rest of West Bengal

  • Expand beyond their core markets in adjacent geographies of eastern and northeastern India
  • Supplement organic growth with selective acquisitions

Suraksha Diagnostics Limited is a blend of strong financials, market leadership and a chain that deploys the latest technologies to ensure the patient is well served. However, intense competition in the sector, dependence on third parties and concentration of facilities in West Bengal can pose challenges. If you want to invest in the IPO, assess the strengths and weaknesses thoroughly.

Suraksha Diagnostic IPO FAQs

Suraksha Diagnostic IPO will list on 2024-12-06.

846.25 is the issue size of Suraksha Diagnostic IPO.

The minimum lot size is 34 shares and the investment required is ₹14994.

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

You can read more about Suraksha Diagnostic and its IPO from the company’s red herring prospectus (RHP) here.

The Suraksha Diagnostics Limited IPO has an issue size of Rs.846.25 crores. The IPO opens for subscription on 29/Nov/2024 and closes on 03/Dec/2024.

Kfin Technologies Limited is the registrar for this IPO.

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