Suraksha Diagnostic Launches ₹1.91 Crore OFS IPO

26 Nov 2024 , 12:29 PM

Suraksha Diagnostic, backed by OrbiMed, filed its red herring prospectus on November 25, with its IPO opening on November 29. The IPO is an offer-for-sale (OFS) of 1.91 crore equity shares, with no fresh issue involved. Proceeds from the issue will go to promoters and existing investors.

The price band for the IPO will be announced on November 26, while the anchor book for institutional investors will open on November 28. Bidding closes on December 3 for all investors. Promoters Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma will sell 21.32 lakh shares each, while OrbiMed Asia II Mauritius will offload 1.06 crore shares. Other stakeholders Munna Lal Kejriwal and Santosh Kumar Kejriwal will sell the remaining 21.32 lakh shares.

Suraksha Diagnostic operates across West Bengal, Bihar, Assam, and Meghalaya, offering pathology and radiology testing and medical consultation services. The company’s network includes a central reference laboratory, 8 satellite labs, 49 diagnostic centers, and 166 sample collection centers.

OrbiMed Asia II Mauritius holds the largest stake of 33.35%, while the promoters collectively own 44.02% of the company.

Suraksha recorded a net profit of ₹23.6 crore in FY24, a 262.6% growth from ₹6.5 crore in FY23. Revenue grew by 15% to ₹218.7 crore, while EBITDA increased 59.5% to ₹70 crore, with margins expanding to 32.03% in FY24.  For Q1 FY25, the company reported a profit of ₹7.94 crore on revenue of ₹60.73 crore. Shares will be listed on the BSE and NSE starting December 6.

Merchant bankers for the issue are ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets. Suraksha competes with leading diagnostic players like Dr Lal PathLabs, Metropolis Healthcare, Thyrocare, and Vijaya Diagnostic.