Suraksha Diagnostic IPO: RHP Filed, Issue To Open For Subscription On Nov. 29

Suraksha Diagnostic Ltd., which backed by the US-based OrbiMed, filed the red herring prospectus for its upcoming initial public offering on Monday.

The IPO, set to open for subscription on Nov. 29, comprises only an offer-for-sale component, with no fresh issuance of shares. The company will offload a total of 1.9 crore shares through the OFS—the proceeds of which will be entirely received by the selling shareholders.

The sellers include promoters Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma, who will be offloading 21.32 lakh shares each.

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.

The RHP also revealed that individual shareholders Munna Lal Kejriwal and Santosh Kumar Kejriwal will be offloading 7.99 lakh and 13.32 lakh shares, respectively.

The price band for the public issue was not shared in the RHP. The Kolkata-based diagnostic services provider will release the price band, along with the portion earmarked for retail investors, qualified institutional buyers and non-institutional investors, before the IPO hits the Dalal Street.

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

Following the public issue, shares of Suraksha Diagnostic will be listed on the NSE and the BSE. 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.

In the financial year ended Mar 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.

In the quarter-ended June 31, 2024, the company posted a topline of Rs 60.7 crore and a bottomline of Rs 7.6 crore. The comparable year-ago earnings were not mentioned in the RHP.