Tue Dec 03 09:08:50 UTC 2024: ## Suraksha Diagnostic IPO Oversubscribed on Day 3, Strong Retail Interest

**Kolkata, December 3, 2024** – The initial public offering (IPO) of Suraksha Diagnostic Ltd., a leading diagnostic chain in Eastern India, saw significant investor interest on its third and final day. By the close of trading, the IPO was oversubscribed by 61%, exceeding initial expectations.

The ₹846 crore IPO, which consists entirely of an Offer for Sale (OFS) of existing shares by promoters and investors, saw strong retail participation, with this segment oversubscribed by 69%. Non-institutional investors also showed considerable interest, with their portion oversubscribed by 57%. While initially lagging, Qualified Institutional Buyers (QIBs) ultimately subscribed 49% of their allotted portion.

Earlier in the offering, the IPO saw a 25% subscription on day two, driven primarily by retail investors who subscribed at a 45% rate. Non-institutional investors contributed 13% on the second day, while QIB participation remained low. Day one saw a slower start, with an 11% overall subscription rate.

Suraksha Diagnostic, established in 2005, offers a wide range of pathology, radiology, and medical consultation services across West Bengal, Bihar, Assam, and Meghalaya through a network of 49 diagnostic centers and 166 sample collection centers. The company had previously raised ₹254 crore from anchor investors.

While the company boasts a strong presence in Eastern India and significant growth potential within the rapidly expanding Indian diagnostics market (projected to grow at a CAGR of 10-12% between FY24 and FY28), analysts have pointed out the high valuation (P/E ratio of 99x based on FY24 financials) and intense competition within the sector as potential risks. The company’s market share in East India remains relatively small (1.15% to 1.30% in FY24).

The IPO’s allotment is expected to be finalized on December 4th, with refunds beginning December 5th, and shares credited to investor demat accounts on the same day. The shares are anticipated to be listed on the BSE and NSE on December 6th. The IPO’s price band is set between ₹420 and ₹441 per share.

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