Suraksha Diagnostic Sets Price Band For Rs 846-Crore IPO

Suraksha Diagnostic Ltd., backed by US-based OrbiMed, will launch its initial public offering on Nov. 29 at a price band of Rs 420-441 per share.

The IPO comprises only an offer-for-sale component, with no fresh issuance of shares. The company will offload a total of 1.91 crore shares through the OFS—the proceeds of which will be entirely received by the selling shareholders. The maiden issue will be worth Rs 846 crore at the upper end of the price band.

Bids can be made for a minimum lot of 34 shares or in multiples thereof, according to the price band advertisement on Tuesday. Following the public issue, shares of Suraksha Diagnostic will be listed on the NSE and the BSE.

Promoters Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma will be offloading 21.32 lakh shares each under the offer-for-sale component.

OrbiMed Asia II Mauritius Ltd., the entity through which OrbiMed has invested in Suraksha Diagnostic, will be selling 1.06 crore shares through the OFS. Other selling shareholders will include Munna Lal Kejriwal and Santosh Kumar Kejriwal.

The anchor investment round is scheduled on Nov. 28, a day before the offer opens for subscription. The IPO will close on Dec. 3.

ICICI Securities Ltd., Nuvama Wealth Management Ltd., and SBI Capital Markets Ltd. are the book-running lead managers for the IPO, whereas KFin Technologies Ltd. is the registrar for the issue.

Suraksha Diagnostic offers a one-stop integrated solution for pathology and radiology testing and medical consultation services to its customers. The company has eight satellite laboratories and 194 customer touchpoints which include 48 diagnostic centres, and 146 sample collection centres across West Bengal, Bihar, Assam and Meghalaya as of March 31, 2024.

In the financial year ended March 31, 2024, Suraksha Diagnostic logged revenue from operations of Rs 218.7 crore, higher by 15% as compared to Rs 190.1 crore in fiscal 2023. The net profit grew nearly four-fold to Rs 23.1 crore in fiscal 2024 from Rs 6 crore in the preceding year.