The Suraksha Diagnostic Limited IPO is open for subscription from November 29, 2024, to December 3, 2024, with a total issue size of ₹846.25 crore.

IPO Details:

• Price Band: ₹420 to ₹441 per share.
• Lot Size: 34 shares (minimum investment of ₹14,994 for retail investors).
• Issue Type: Offer for Sale (OFS) of 1.91 crore shares; no fresh issue.
• Listing: BSE and NSE.
• Registrar: KFin Technologies Limited.

Key Dates:

• Basis of Allotment: December 4, 2024.
• Refund Initiation: December 5, 2024.
• Listing Date: December 6, 2024.

Allocation:

• Qualified Institutional Buyers (QIBs): 50%.
• Retail Investors: 35%.
• Non-Institutional Investors (NIIs): 15%.

Financials and Valuation:

• Suraksha Diagnostics reported a revenue of ₹219 crore in FY24 with an EBITDA margin of 32%.
• The IPO is priced at a P/E ratio of 99.54x, which is higher than the industry average of 79.65x, indicating overvaluation concerns​Zee Business​SBI Securities​FinOwing.

Strengths and Risks:

Strengths:

• Strong presence in East and Northeast India.
• Integrated diagnostic services (pathology and radiology).
• Advanced technology and infrastructure.

Risks:

• Heavy reliance on revenue from West Bengal (~95% in FY24).
• High valuation compared to peers like Dr. Lal PathLabs and Metropolis Healthcare.
• Competition in the diagnostics industry​ SBI Securities​FinOwing.

Should You Apply?

While Suraksha Diagnostic has a solid business model, its high valuation and dependency on a single region pose risks. Analysts suggest evaluating long-term growth potential before investing. You may consult a financial advisor for tailored advice​