Suraksha Diagnostic's IPO Set to Elevate Market Presence

Suraksha Diagnostic Ltd has announced a price band of Rs 420-441 for its Rs 846 crore IPO, opening on November 29. The offering, an Offer-for-Sale, involves no new shares and aims to benefit listing. The company is focused on pathology and radiology services in several Indian states.

Suraksha Diagnostic Ltd announced on Tuesday its decision to set a price band of Rs 420 to Rs 441 per share for its Rs 846-crore Initial Public Offering (IPO).

The initial share-sale will officially open to the public from November 29 to December 3, with a special one-day bidding for anchor investors on November 28, according to the company's statement.

Headquartered in Kolkata, the company's IPO involves an Offer-for-Sale (OFS) component of 19,189,330 equity shares, valued at Rs 846.25 crore at the price band's upper limit, with no fresh shares included.

Promoters, including Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma, along with investors like OrbiMed Asia II Mauritius Ltd, Munna Lal Kejriwal, and Santosh Kumar Kejriwal, intend to offload shares under the OFS.

The company stated that the IPO aims to list equity shares on stock exchanges and execute OFS for selling shareholders, indicating no proceeds will be directed to the company since fresh shares are absent.

With the share price peak, the company’s market capitalisation is estimated to reach Rs 2,300 crore.

Suraksha Diagnostic provides a comprehensive suite of pathology, radiology, and medical consultation services through its network, which includes a central lab, 8 satellite labs, and 194 customer points in West Bengal, Bihar, Assam, and Meghalaya as of March 2024.

The company reported conducting 5.98 million tests for about 1.14 million patients in fiscal 2024.

Half of the offering is set aside for qualified institutional buyers, 35% for retail investors, and the remaining 10% for non-institutional investors.

ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets are appointed as lead managers for the issue. The equity shares are planned to be listed on BSE and NSE on December 6.

(With inputs from agencies.)