Suraksha Diagnostic IPO: Should you apply for listing or long term? Know its price band, important dates and other details
The initial public offering (IPO) of Suraksha Diagnostic Limited, a healthcare sector company that provides pathology, radiology testing and medical services, will open for subscription on November 29, 2024. The healthcare company has set a price band for the IPO between Rs 420 and Rs 441 with a face value of Rs 2 per share. It will be completed next month i.e. December 3, 2024.
The issue size of Suraksha Diagnostic Limited’s IPO is Rs 846.25 crore which includes an offer for sale (OFS) of 1.91 crore shares, excluding the fresh issue component. Investors can bid for a minimum share size of 34 shares and in multiples thereof. The issue allocation ratio is set at 50 percent, 35 percent, and 15 percent of Qualified Institutional Investors (QIBs), retail investors, and Non-Institutional Investors (NIIs), respectively.
Suraksha Diagnostic Limited IPO: BRLMS
The IPO is managed by several leading wealth management companies such as ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets.
Suraksha Diagnostic Limited IPO: Registrar
The official registrar of Suraksha Diagnostic Limited IPO is KFin Technologies.
Suraksha Diagnostic Limited IPO: Important dates
As mentioned earlier the IPO will open for registration on Friday, November 29, 2024, and close on Tuesday, December 3, 2024. The allotment basis will be finalized on Wednesday, December 4, 2024. The stock will start trading – BSE and NSE – on Friday, December 6, 2024.
Analysts at two domestic brokerages pointed out that Suraksha Diagnostic Limited IPO’s top price band is overpriced on an earnings basis. Find out here what they say:
Should you apply for Suraksha Diagnostic IPO? Here’s what analysts recommend
According to analysts at SBI Securities, the higher price band of Rs 441 emphasizes the premium implied by the company’s position as an integrated diagnostic provider, offering a one-stop solution for pathology, radiology, and consulting services. Importantly, the brokerage does not provide any rating or any recommendation for this matter.
Meanwhile, even highlighting that the valuation metrics are raising the IPO prices, another domestic brokerage, Bajaj Broking recommended to investors applying for a long-term horizon.
Here’s a summary of some healthcare diagnostic companies along with P/E, RoE, sales and more:
| Details (in cr) | Suraksha Diagnostic | Dr Lal PathLabs | Metropolis Healthcare | Thyrocare Technologies | Vijaya Diagnostic |
| CMP (Rs) | 441 (high value band) | 3082 | 2160 | 1020 | 1164 |
| Selling | 218.7 | 2226.6 | 1207.7 | 571.9 | 547.8 |
| EBITDA | 70.1 | 609.3 | 282.6 | 137.4 | 220.9 |
| Gross Profit | 23.1 | 362.3 | 128.5 | 96 | 119.6 |
| Mr. Cap. | 2296.8 | 25755 | 11071 | 5403 | 11946 |
| Business value | 2250.4 | 25008 | 11000 | 5363 | 11873 |
| EBITDA margin (%) | 32 | 27.4 | 23.4 | 24 | 40.3 |
| Gross Margin Profit (%) | 10.6 | 16.3 | 10.6 | 16.8 | 21.8 |
| IP/E (x) | 96.1 | 71.9 | 86.6 | 76.3 | 100.3 |
| EV/EBITDA (x) | 32.1 | 41 | 38.9 | 39 | 53.7 |
| ROE (%) | 13.3 | 19.6 | 11.7 | 19.7 | 18.2 |
| ROCE (%) | 21.8 | 24.1 | 17.2 | 17.2 | 24.9 |
| EV/Sales | 5.1 | 8.1 | 5.1 | 9.4 | 21.7 |
