Suraksha Diagnostics IPO day 3: GMP, subscription status to review. Apply or not?

Tue Dec 03 06:31:19 UTC 2024: ## Suraksha Diagnostics IPO Receives Tepid Response, Experts Advise Caution

**MUMBAI, Dec 2, 2024** – The initial public offering (IPO) of Suraksha Diagnostics Limited, which opened last week and closes today, has received a lukewarm response from investors. The ₹846.25 crore offer, entirely an Offer for Sale (OFS) meaning proceeds go to existing shareholders, not the company, has seen subscriptions at only 0.36 times by midday on its third day. The IPO price band is set at ₹420 to ₹441 per share.

While the grey market currently shows shares trading at par, several market experts advise caution. Arun Kejriwal of Kejriwal Research and Investment Services notes the IPO’s high valuation and suggests investors wait for the listing before investing. Shivani Nyati of Swastika Investmart echoes this sentiment, citing unimpressive financial performance in FY22-23, although noting signs of recovery in FY24. Both she and other firms, including StoxBox and Anand Rathi, have assigned an “avoid” rating to the IPO.

The retail portion of the IPO has fared slightly better, with 0.59 times subscription, while the Non-Institutional Investors (NII) segment stands at a mere 0.28 times. The overall slow uptake highlights investor hesitancy despite the company’s position in the medical consultancy services sector. Potential investors are urged to conduct thorough due diligence and seek professional financial advice before making any investment decisions.