Mon Dec 02 23:08:09 UTC 2024: ## Suraksha Clinic IPO Underperforms, Experts Recommend “Avoid”

**Mumbai, December 2, 2024** – The initial public offering (IPO) of Suraksha Clinic and Diagnostic, launched on November 29th, has seen underwhelming response so far. Aiming to raise Rs 846.25 crore by selling 1.92 crore shares, the IPO, priced between Rs 420 and Rs 441 per share, closed on December 3rd. As of December 2nd, the IPO was only 23% subscribed. Retail investor participation was particularly weak at 0.42 times subscription, while Non-Institutional Investors (NIIs) showed limited interest with an 11% subscription rate.

The lackluster demand is reflected in the grey market, where the stock is trading at the issue price, indicating a potential listing at par. Allotment is expected on December 4th, with a tentative listing on the NSE and BSE on December 6th. Minimum investment for retail investors is Rs 14,994 (34 shares).

Anand Rathi Research issued a negative outlook, citing a high valuation. At the upper price band, the company is valued at 99.3x its FY24 earnings and 75.0x its annualized FY25 earnings. The research firm noted the company’s limited geographical reach (eastern India) and highly competitive sector, recommending investors “Avoid” the IPO. ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets are the lead managers, with Kfin Technologies acting as registrar.

**Separately**, Pricol, an automotive component manufacturer, announced a Rs 215.3 crore cash acquisition of Sundaram AutoComponents Ltd.’s injection moulding business. This acquisition is expected to boost Pricol’s revenue by approximately Rs 730 crore.

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