Fri Nov 29 00:42:22 UTC 2024: ## Eastern India Diagnostic Chain Suraksha Diagnostic to Launch IPO Friday

**Kolkata, India – November 28, 2024** – Suraksha Diagnostic Ltd., a leading diagnostic chain in Eastern India, is set to launch its initial public offering (IPO) this Friday. The IPO, entirely an offer for sale (OFS), will see 1.92 crore shares offered at a price band of Rs 420-441 per share, raising a total of Rs 846.25 crore. Promoters Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma, along with investors OrbiMed Asia II Mauritius Limited, Munna Lal Kejriwal, and Santosh Kumar Kejriwal, are selling their stakes.

The company, established in 2005, operates a network of eight satellite laboratories, 49 diagnostic centers, and 166 sample collection centers across West Bengal, Bihar, Assam, and Meghalaya, serving 1.14 million patients in FY24 and conducting 5.98 million tests. While its market share in Eastern India sits at 1.15-1.30%, Suraksha Diagnostic boasts expanding margins (from 28% in FY22 to 32% in FY24) and a 5.4% compound annual growth rate in net profit over FY22-24, despite a revenue dip in FY23 mirroring industry trends.

The company’s future plans include strengthening its position in West Bengal, expanding into adjacent geographies, strategic acquisitions, technological upgrades for enhanced customer experience, and boosting revenue through B2B partnerships and expanded medical consultation services.

However, the prospectus highlights potential risks including high revenue dependence on West Bengal, intense competition leading to lower market share, and susceptibility to operational and legal claims. The company also generates over 90% of its revenue from the B2C segment, making it vulnerable to customer loss.

Currently, the grey market premium (GMP) is nil, suggesting a potential listing price of Rs 441 per share. Investors are cautioned that GMP is speculative and IPOs carry inherent market risks; thorough due diligence and consultation with financial advisors are advised. The minimum lot size for the IPO is 34 shares.

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