Suraksha Diagnostic Limited is set to launch its initial public offering (IPO) from November 29 to December 3, 2024, aiming to raise approximately ₹846 crore through an offer-for-sale of 1.92 crore equity shares. The price band for the IPO is fixed between ₹420 and ₹441 per share. As a leading integrated diagnostic service provider in East India, Suraksha operates a central reference laboratory, eight satellite labs, and numerous diagnostic centers, conducting around 5.98 million tests for approximately 1.14 million patients in FY24.
₹15
₹441
₹438
Expert Opinions
Market sentiment for the Suraksha Diagnostic IPO is notably positive, reflecting strong interest in the healthcare sector, particularly in diagnostics. Company strengths include a robust operational network with over 194 customer touchpoints, including 48 diagnostic centers and eight satellite labs, which enhance its service delivery across East India. The company reported impressive financial growth, with FY24 revenue of ₹218.71 crore and a profit of ₹23.13 crore, indicating solid operational efficiency. However, potential risks and challenges include intense competition from established players and regulatory hurdles that could impact growth.
The valuation analysis suggests a price band between ₹420 and ₹441 per share, resulting in a P/E ratio of around 99.54, which is relatively high compared to peers. From a long-term investment perspective, Suraksha Diagnostic is well-positioned to benefit from the increasing demand for quality healthcare services in India, making this IPO an attractive option for investors seeking exposure to the growing diagnostics market.
Investor Considerations
Investors considering the Suraksha Diagnostic IPO should evaluate several critical factors. Company performance and fundamentals demonstrate solid growth, with FY24 revenue reaching ₹218.71 crore and a profit of ₹23.13 crore, highlighting the company’s operational efficiency and market presence. The sector outlook is favorable, driven by increasing healthcare demands and advancements in diagnostic technology, particularly in East India where Suraksha operates a comprehensive network of 48 diagnostic centers and eight satellite labs.
The IPO valuation is set between ₹420 and ₹441 per share, reflecting a price-to-earnings ratio of approximately 99.54, which may be considered high compared to industry peers. Growth prospects remain strong, with plans for network expansion and enhanced service offerings. However, potential risk factors include intense competition and regulatory challenges in the healthcare sector. A long-term investment horizon is advisable, as Suraksha Diagnostic is well-positioned to leverage the growing demand for quality healthcare services in India.
| Date | GMP | Trend |
|---|---|---|
| 05 Dec 2024 10.51 | ₹15 | Up |
| 04 Dec 2024 10.49 | ₹9 | Up |
| 03 Dec 2024 11.15 | ₹00 | --- |
| 02 Dec 2024 11.10 | ₹00 | --- |
| 01 Dec 2024 11.19 | ₹00 | --- |
| 30 Nov 2024 12.56 | ₹00 | --- |
| 29 Nov 2024 10.55 | ₹00 | --- |
| 28 Nov 2024 10.35 | ₹00 | --- |
| 27 Nov 2024 11.29 | ₹00 | Down |
| 26 Nov 2024 11.10 | ₹1 | Up |
| 25 Nov 2024 18.06 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Suraksha Diagnostic’s listing performance. While the GMP of ₹15 predicted a positive premium of 3.40%, the stock actually listed at a slight discount of 0.68%. The GMP not only misread the direction of the listing movement but also had a prediction error of 3.95%, demonstrating its unreliability as a price predictor in this case.
Suraksha Diagnostic IPO Current GMP is ₹15.
Suraksha Diagnostic IPO Expected Returns is 3.40%.
Suraksha Diagnostic IPO estimated listing price is ₹456.