Mon Dec 02 09:01:55 UTC 2024: ## Suraksha Diagnostic IPO Opens Weak, Receives Subdued Response
**MUMBAI, December 1, 2023** – The initial public offering (IPO) of Suraksha Diagnostic Ltd., a leading integrated diagnostics provider in eastern India, opened to a muted response on its second day. As of 10:45 am, the ₹846.25 crore IPO had received subscriptions for only 0.16 times the shares offered, with bids for 13,432,533 shares against 21,969,78 shares on offer.
The IPO, priced between ₹420 and ₹441 per share, is open until December 3rd, with allotment scheduled for December 4th and listing on the BSE and NSE on December 6th. Non-institutional investors showed even less interest, with a subscription rate of just 0.08 times, while retail investors fared slightly better at 0.29 times.
Despite the weak market response, the grey market premium (GMP) for Suraksha Diagnostic remained at zero on Monday, meaning unlisted shares traded at the upper end of the IPO price band (₹441).
Analysts offer mixed views on the IPO. While Axis Capital highlighted the company’s diversification across pathology and radiology, along with a strong revenue growth CAGR of 20.83% between FY22-24, other firms express concerns about valuation. SBI Securities noted that at the upper price band, the company has a FY24 P/E multiple of 96.1x and EV/Sales multiple of 5.1x, suggesting a fully priced IPO. Bajaj Broking gave a “subscribe for long term” recommendation, but acknowledged the high P/E ratio based on FY24 earnings (99.32).
The IPO is an offer-for-sale (OFS) of 19,189,330 equity shares, with proceeds going to existing promoters and investors. ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets are the book-running lead managers. The minimum investment for retail investors is ₹14,994.
First Piper 