Suraksha Diagnostic IPO is set to open for subscription on November 29, 2024, and will close on December 3, 2024. This book-built IPO is entirely an offer for sale of 1.92 crore equity shares, aggregating to ₹846.25 crores.
The price band for the issue has been fixed at ₹420 to ₹441 per share, with a minimum application lot size of 34 shares, requiring a minimum investment of ₹14,994 for retail investors. For sNII (Small Non-Institutional Investors), the minimum investment is 14 lots (476 shares) amounting to ₹209,916, while bNII (Big Non-Institutional Investors) must apply for 67 lots (2,278 shares), requiring an investment of ₹1,004,598. The IPO allotment is expected to be finalized on December 4, 2024, with the listing on BSE and NSE tentatively scheduled for December 6, 2024.
Overview of Contents
Suraksha Diagnostic IPO Details
| Details | Information |
|---|---|
| IPO Date | The Suraksha Clinic and Diagnostic Limited IPO opens on November 29, 2024, and closes on December 3, 2024. |
| Listing Date | The shares are proposed to be listed on December 6, 2024, subject to final approval and allotment confirmation. |
| Face Value | The face value of each equity share is ₹2 per share, making it accessible for a wide range of investors. |
| Price Band | The IPO price band is set between ₹420 and ₹441 per share, offering flexibility within this range for bidding. |
| Lot Size | A minimum of 34 shares is required per application, making the minimum investment amount ₹14,994 for retail investors. |
| Total Issue Size | The total issue comprises 19,189,330 equity shares, aggregating up to ₹846.25 crores. |
| Offer for Sale (OFS) | Entirely an Offer for Sale (OFS) of 19,189,330 equity shares with a face value of ₹2, aggregating up to ₹846.25 crores. |
| Issue Type | This is a Book Built Issue IPO, where the price is determined through a bidding process during the subscription period. |
| Listing At | The shares will be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). |
| Pre-Issue Shareholding | The pre-issue shareholding stands at 52,080,758 equity shares, representing the existing ownership structure. |
| Subscription Period | Investors can subscribe to the IPO over the five-day window, with allotment details available soon after closure. |
| Post-Listing Expectations | Market analysts expect the stock to garner significant interest due to its competitive pricing and strategic business model. |
Suraksha Diagnostic IPO Dates
The Suraksha Clinic and Diagnostic IPO is set to open on November 29, 2024, and close on December 3, 2024. Below is the tentative timeline for the IPO process, outlining key dates for subscription, allotment, refunds, and listing on the stock exchanges:
| Event | Date | Details |
|---|---|---|
| IPO Open Date | Friday, November 29, 2024 | The IPO opens for subscription, allowing investors to place bids at the fixed price band. |
| IPO Close Date | Tuesday, December 3, 2024 | The IPO subscription window closes at 5:00 PM, marking the final day for investors to apply for the issue. |
| Cut-off Time for UPI Mandate Confirmation | 5:00 PM, December 3, 2024 | Investors must confirm UPI mandates by this time for their application to be considered valid. |
| Basis of Allotment | Wednesday, December 4, 2024 | The final allotment of shares will be determined and announced, including the share allocation for each applicant. |
| Initiation of Refunds | Thursday, December 5, 2024 | Refunds will be initiated for unsuccessful applicants, and amounts will be credited to the bank accounts. |
| Credit of Shares to Demat | Thursday, December 5, 2024 | Successful applicants will have the allotted shares credited to their Demat accounts. |
| Listing Date | Friday, December 6, 2024 | The shares will be listed on the BSE and NSE, and trading will commence on the exchange. |
Suraksha Clinic and Diagnostic IPO Lot Size Details
Investors can apply for a minimum of 34 shares, with subsequent bids in multiples of 34. Below is a detailed breakdown of the minimum and maximum investment amounts for retail investors, Small HNIs (S-HNI), and Big HNIs (B-HNI) based on different lot sizes:
| Application Type | Lot Size | Shares | Amount | Details |
|---|---|---|---|---|
| Retail (Min) | 1 | 34 | ₹14,994 | Minimum application for retail investors with 34 shares costing ₹14,994. |
| Retail (Max) | 13 | 442 | ₹194,922 | Maximum investment for retail investors, applying for 442 shares at ₹194,922. |
| S-HNI (Min) | 14 | 476 | ₹209,916 | Small HNI investors can apply for a minimum of 476 shares for ₹209,916. |
| S-HNI (Max) | 66 | 2,244 | ₹989,604 | Small HNI maximum bid involves 2,244 shares costing ₹989,604. |
| B-HNI (Min) | 67 | 2,278 | ₹1,004,598 | Big HNI investors must apply for at least 2,278 shares with an investment of ₹1,004,598. |
About Suraksha Diagnostic IPO
Suraksha Diagnostic Limited, established in 2005, is a leading provider of pathology, radiology testing, and medical consultancy services. The company operates a central reference laboratory with 8 satellite laboratories and 215 customer touchpoints, including 49 diagnostic centers and 166 sample collection centers across West Bengal, Bihar, Assam, and Meghalaya as of June 30, 2024.
Suraksha offers both online and offline medical consultation services at its 44 diagnostic centers, which house 120 polyclinics with over 750 doctors. The company’s operations are supported by advanced technology platforms like its Laboratory Information Management System (LIMS), Radiology Information System (RIS), Picture Archive Communication System (PACS), and Enterprise Resource Planning (ERP) system. Additionally, Suraksha provides vaccination services, customized testing packages for early disease detection, and utilizes digital pathology and artificial intelligence for blood tests, while all radiology reports are generated via a digital platform for faster turnaround times.
Suraksha’s competitive strengths lie in its well-positioned diagnostics network, catering to the growing demand for organized diagnostic services in eastern and northeastern India’s fragmented markets. As an integrated diagnostics provider, it offers pathology and radiology testing along with medical consultancy services all under one roof. The company’s advanced clinical infrastructure, strong focus on quality, and high customer retention rates further enhance its market presence. The management team’s relevant industry experience is an added advantage, ensuring the company remains a key player in the region’s healthcare sector.
Suraksha Diagnostic IPO Company Financial Report
The financial performance of Suraksha Diagnostic Limited shows a positive trend in revenue and profitability, with significant growth in 2024 compared to the previous year. Below is a detailed breakdown of the company’s financial performance over the last three years:
| Period Ended | Revenue (₹ in Crores) | Expense (₹ in Crores) | Profit After Tax (₹ in Crores) | Assets (₹ in Crores) | Year-on-Year Growth in Revenue | Year-on-Year Growth in Profit |
|---|---|---|---|---|---|---|
| 2022 | ₹223.19 | ₹197.76 | ₹20.82 | ₹275.96 | - | - |
| 2023 | ₹190.13 | ₹186.94 | ₹6.07 | ₹281.20 | -14.81% | -70.79% |
| 2024 | ₹218.71 | ₹190.03 | ₹23.13 | ₹300.21 | +15.08% | +281.51% |
Key Insights:
- Revenue Growth: The company experienced a decline in revenue in 2023 but saw a robust recovery in 2024 with a 15.08% growth.
- Profit Surge: Profit after tax showed a remarkable jump in 2024, growing by 281.51%, highlighting the company’s improved profitability.
- Asset Expansion: Suraksha’s assets increased by 6.77% from ₹281.20 crores in 2023 to ₹300.21 crores in 2024, signaling healthy business expansion.
This financial data underlines Suraksha Diagnostic’s strong performance trajectory and its potential for sustained growth in the healthcare sector.
Suraksha Clinic and Diagnostic IPO: KPI as of March 31, 2024
| KPI | Values | Pre-IPO | Post-IPO | Explanation |
|---|---|---|---|---|
| Return on Equity (ROE) | 14.09% | 4.44 | - | ROE reflects the company’s profitability in relation to shareholders' equity. A value of 14.09% indicates a solid return on equity. |
| Return on Capital Employed (ROCE) | 21.46% | - | - | ROCE measures the company’s ability to generate profit from its capital. A higher ROCE of 21.46% is a positive indicator of operational efficiency. |
| Debt-to-Equity Ratio | 0.2 | - | - | A low Debt-to-Equity ratio of 0.2 indicates the company is conservatively leveraging debt to finance its growth, signaling lower financial risk. |
| Return on Net Worth (RoNW) | 14.09% | - | - | RoNW is the measure of profitability relative to shareholders’ equity, matching the ROE of 14.09%, showing efficient use of equity. |
| Price-to-Book Value (P/BV) | 13.1 | - | - | The P/BV ratio indicates market value relative to book value, suggesting that the company is valued higher in the market compared to its book value. |
| Profit After Tax (PAT) Margin | 10.57% | - | - | A PAT margin of 10.57% shows the company retains a solid portion of its revenue as profit after expenses. |
Pre and Post IPO Earnings and Valuation Metrics
| Metric | Pre-IPO | Post-IPO | Explanation |
|---|---|---|---|
| Earnings Per Share (EPS) | ₹4.44 | - | EPS indicates the portion of profit allocated to each outstanding share. The Pre-IPO EPS is based on the shareholding before the IPO and the earnings till March 31, 2024. |
| Price-to-Earnings Ratio (P/E) | 99.31 | - | The P/E ratio reflects the company’s valuation relative to its earnings. A high P/E of 99.31 could indicate that the market has high expectations for future growth. |
Notes:
- Pre-IPO EPS: Calculated based on the shareholding structure before the IPO and earnings up to March 31, 2024.
- Post-IPO EPS: Based on the new shareholding structure after the issue and annualized earnings for the fiscal year ending June 30, 2024.
This detailed analysis offers insights into Suraksha Clinic and Diagnostic’s financial health, valuation, and performance expectations as the IPO proceeds.
Suraksha Diagnostic IPO Valuation – FY2024
| KPI | Value | Explanation |
|---|---|---|
| Return on Equity (ROE) | 14.09% | ROE represents the company’s ability to generate profit from shareholders' equity. A 14.09% ROE indicates strong profitability relative to equity invested. |
| Return on Capital Employed (ROCE) | 21.46% | ROCE reflects how effectively the company utilizes its capital to generate profits. A higher ROCE of 21.46% indicates efficient capital utilization. |
| EBITDA Margin | 33.66% | EBITDA Margin indicates operational profitability, excluding non-operating expenses. A margin of 33.66% shows strong profitability from core operations. |
| Profit After Tax (PAT) Margin | 10.57% | PAT Margin shows how much profit the company retains after expenses. A 10.57% margin is solid, indicating good profitability relative to revenue. |
| Debt to Equity Ratio | 0.20 | The Debt to Equity ratio of 0.20 indicates low financial leverage, meaning the company is not heavily reliant on debt for financing its operations. |
| Earnings Per Share (EPS) | ₹4.43 (Basic) | EPS reflects the portion of profit attributed to each outstanding share. An EPS of ₹4.43 indicates solid earnings per share for investors. |
| Price to Earnings (P/E) Ratio | N/A | P/E ratio is unavailable (N/A) due to the absence of a definitive price for the shares at the time of this report. However, P/E ratio is an important indicator of market valuation. |
| Return on Net Worth (RoNW) | 14.09% | RoNW is the return on shareholders’ equity and is the same as ROE, highlighting efficient use of investor capital to generate profits. |
| Net Asset Value (NAV) | ₹33.66 | NAV represents the per-share value of the company’s assets after liabilities. A NAV of ₹33.66 per share indicates the company's asset-based valuation. |
Peer Group Comparison
| Company | EPS (₹) | PE Ratio | RoNW % | NAV (₹) | Income (Revenue) | Explanation |
|---|---|---|---|---|---|---|
| Dr. Lal PathLabs | 43.05 | 68.66 | 20.35% | 221.47 | ₹2,226.60 Cr. | Highest EPS, strong earnings per share; leads in RoNW, NAV, and revenue. |
| Metropolis Healthcare | 24.95 | 82.57 | 12.26% | 213.98 | ₹1,207.71 Cr. | High P/E ratio, indicating higher stock price relative to earnings. |
| Thyrocare | 13.42 | 47.60 | 13.34% | 99.48 | ₹571.88 Cr. | Lower EPS and revenue, but reasonable returns on equity. |
| Vijaya Diagnostic | 11.62 | 67.65 | 19.77% | 64.21 | ₹547.81 Cr. | Moderate EPS and revenue, strong RoNW for its size. |
Conclusion
Suraksha Clinic and Diagnostic IPO offers a promising investment opportunity in the growing diagnostics sector, with a strong network and advanced technological infrastructure. The company’s strong financial performance, demonstrated by significant profit growth and solid key metrics, positions it well for future expansion. However, the IPO is priced at a premium compared to peers, which investors should consider. Overall, it presents a potential long-term growth opportunity in a rapidly expanding market, though investors should assess the premium pricing and sector risks before investing.
Suraksha Diagnostic IPO FAQs
What is the Suraksha Diagnostic IPO date?
The Suraksha Clinic and Diagnostic IPO opens for subscription on November 29, 2024, and closes on December 3, 2024.
What is the price band for the Suraksha Diagnostic IPO?
The price band for the Suraksha Diagnostic IPO is set at ₹420 to ₹441 per share.
What is the minimum lot size for the IPO application?
The minimum lot size is 34 shares, with an investment of ₹14,994 for retail investors.
When will the Suraksha Diagnostic IPO be listed?
The listing date for the Suraksha Diagnostic IPO is December 6, 2024 (tentative), and it will be listed on both BSE and NSE.
What is the total issue size for the IPO?
The total issue size of the IPO is ₹846.25 crore, consisting of an offer for sale of 1.92 crore shares.
What is the allocation for retail investors?
Retail investors can apply for a minimum of 1 lot (34 shares) and up to a maximum of 13 lots (442 shares).
How is the allotment process for the Suraksha Diagnostic IPO handled?
The allotment for the Suraksha Diagnostic IPO is expected to be finalized on December 4, 2024. Refunds will be initiated by December 5, 2024, and shares will be credited to Demat accounts by the same date.
What is the face value of each share in the Suraksha Diagnostic IPO?
The face value of each share in the IPO is ₹2.
What is the EPS of Suraksha Diagnostic for FY2024?
The Earnings Per Share (EPS) for Suraksha Diagnostic for FY2024 is ₹4.43 (Basic).
How does Suraksha Diagnostic compare to its peers in the market?
Suraksha Diagnostic’s key metrics like RoE (14.09%) and RoCE (21.46%) reflect its strong financial performance, though it faces competition from well-established players like Dr. Lal PathLabs and Metropolis Healthcare in terms of revenue and market share.
What are the major strengths of Suraksha Diagnostic?
Suraksha Diagnostic has a well-invested and technologically advanced infrastructure, a strong presence across Eastern and Northeastern India, and offers a comprehensive range of pathology, radiology, and consultancy services.
Should I invest in the Suraksha Diagnostic IPO?
The decision to invest in the IPO depends on your risk appetite and investment goals. While Suraksha Diagnostic shows strong growth potential in the healthcare sector, the premium valuation and competitive market conditions should be considered.