Mon Dec 02 07:43:16 UTC 2024: ## Suraksha Diagnostics IPO Receives Tepid Response on Day One

**MUMBAI, INDIA** – The initial public offering (IPO) of Suraksha Diagnostics Limited, a major diagnostic chain, opened to a lukewarm reception on its first day of trading, Friday, November 29th. The three-day offering, aiming to raise ₹846.25 crore, saw only 11% subscription by the close of the day.

The IPO, which closes on Monday, December 3rd, is an offer for sale (OFS) of 1.92 crore shares by existing shareholders, including promoters and investors. No proceeds will go to the company itself. The price band is set between ₹420 and ₹441 per share.

Investor interest was particularly low across all categories. The Qualified Institutional Buyers (QIB) portion remained unsubscribed, while Non-Institutional Investors (NII) subscribed a mere 0.04%, and Retail Investors 2%. The grey market premium (GMP) was ₹0, indicating no significant demand above the issue price.

Swastika Investmart, a domestic brokerage, issued an “avoid” rating, citing inconsistent financial performance, high valuation, and geographic concentration of revenue in West Bengal. While the company reported a 14.75% revenue increase and a substantial 281.32% profit after tax increase year-over-year, the brokerage suggested investors may find better opportunities elsewhere in the sector.

Suraksha Diagnostics operates a hub-and-spoke model with a central laboratory and eight satellite labs, along with 215 customer touchpoints. The company boasts impressive growth, performing 1.58 million tests in the last quarter, serving approximately 280,000 patients. However, a significant portion (95.34%) of its revenue originates from the Kolkata and surrounding West Bengal areas.

The IPO’s allotment is scheduled for December 4th, with refunds and demat credit on December 5th. Listing on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) is expected on December 6th. ICICI Securities Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd are the book-running lead managers.

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