Suraksha Diagnostic Shares Crash 1% on Debut

Suraksha Diagnostic IPO lists below issue price

Suraksha Diagnostic Lists at ₹437, Falls 3% Below Issue Price

Suraksha Diagnostic Shares Crash 1% on Debut Suraksha Diagnostic Ltd had a subdued market debut on December 6, listing at ₹437 on the BSE—0.9% lower than its issue price of ₹441. The stock further slipped 3.25%, hitting an intraday low of ₹426.65, reflecting cautious investor sentiment. On the NSE, the stock opened slightly better at ₹438, marking a 0.68% discount to its issue price.

IPO Overview

The ₹846.25-crore IPO was entirely an offer-for-sale (OFS) by promoters and existing shareholders, with no fresh capital raised for the company. The issue was subscribed 1.27 times, supported by both retail and institutional investors. Shares were priced between ₹420-441, with a minimum lot size of 34 shares.

About Suraksha Diagnostic

Established in 2005, the Kolkata-based company is a prominent player in pathology and radiology services. As of June 30, 2024, its operations include a central reference laboratory, eight satellite labs, and 215 customer touchpoints across West Bengal, Bihar, Assam, and Meghalaya. The network serves urban and semi-urban markets, focusing on affordable healthcare solutions.

Market Sentiment and Outlook

Despite its strong regional foothold, the IPO’s lack of fresh capital infusion and challenging market conditions likely impacted investor confidence. Analysts suggest the company’s profitability and operational growth will be key focus areas in the coming quarters.

Future Prospects

While the initial listing dampened expectations, Suraksha Diagnostic’s established market presence and expansion plans could support its long-term performance. Investors will closely watch the company’s financial results and strategic initiatives for future growth indicators.

The IPO was managed by ICICI Securities Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd, and the stock trades under the ticker “Suraksha Diagnostic” on both the BSE and NSE.

Suraksha Diagnostic Shares See Muted Debut on Dalal Street, List at ₹438

Suraksha Diagnostic Shares Crash 1% on Debut Suraksha Diagnostic Ltd had a modest debut on December 6, 2024, listing at ₹438 on the NSE, a slight 0.68% discount to its issue price of ₹441. On the BSE, the stock opened at ₹437. After listing, the shares recovered, climbing 2.5% intraday to ₹449.

IPO Details

The ₹846.25-crore IPO, priced in a range of ₹420 to ₹441 per share, was open for subscription from November 29 to December 3, 2024. The issue was entirely an offer-for-sale (OFS) of 1.92 crore equity shares, with no fresh funds raised. The IPO received an overall subscription of 1.27 times, with the Qualified Institutional Buyers (QIB) segment oversubscribed 1.74 times and Non-Institutional Investors (NII) portion 1.40 times. Retail investor interest was relatively lower, with subscriptions at 0.94 times.

Company Overview

Suraksha Diagnostic Shares Crash 1% on Debut Suraksha Diagnostic, headquartered in East India, is a leading integrated diagnostic service provider. As of fiscal 2023, it operates a comprehensive network offering pathology, radiology, and medical consultation services. The network includes a central reference laboratory, eight satellite labs, and 194 customer touchpoints as of March 31, 2024. These include 48 diagnostic centres and 146 franchised sample collection centres across West Bengal, Bihar, Assam, and Meghalaya.

The company is the only diagnostic service provider in East and North-East India accredited by the College of American Pathologists for its reference laboratory, as of March 31, 2024. In fiscal 2024, it conducted approximately 5.98 million tests for 1.14 million patients, with 95.48% of its revenue derived from its core markets in Kolkata and the rest of West Bengal.

Industry Insights

Suraksha Diagnostic Shares Crash 1% on Debut The Indian diagnostic services market, valued at ₹860–₹870 billion in fiscal 2024, is projected to grow at a compound annual growth rate (CAGR) of 10%–12%, reaching ₹1,275–₹1,375 billion by fiscal 2028, according to the CRISIL Report.

With its strong regional presence and extensive network, Suraksha Diagnostic is well-positioned for growth, despite the muted initial market response. Investors will watch closely as the company expands and seeks to capitalize on the growing demand for diagnostic services in India.

Suraksha Diagnostic IPO Listing: Shares Open Below Issue Price

Suraksha Diagnostic Shares Crash 1% on Debut Shares of Suraksha Diagnostic Ltd, a West Bengal-based diagnostic chain, made a lackluster debut on December 6, 2024. The stock listed at ₹437 on the BSE and ₹438 on the NSE, reflecting a nearly 1% discount to the IPO price of ₹441.

IPO Details

The ₹846-crore IPO was priced in the range of ₹420–441 per share and comprised an offer-for-sale (OFS) of 19,189,330 equity shares by existing shareholders. No fresh capital was raised for the business. Ahead of the IPO, the company secured ₹253.87 crore from 12 institutional investors, including Nippon Life India, Kotak Mutual Fund, and Aditya Birla Sun Life Trustee. The IPO saw modest interest, achieving a subscription of 1.27 times by the final day.

Company Overview

Incorporated in 2005, Suraksha Diagnostic operates in pathology, radiology testing, and medical consultancy. Its network includes a central reference laboratory, eight satellite labs, and 215 customer touchpoints (49 diagnostic centers and 166 sample collection centers) across West Bengal, Bihar, Assam, and Meghalaya as of June 30, 2024.

Financial Performance

Suraksha’s financial performance has been inconsistent. However, it demonstrated recovery in FY24, with revenue increasing to ₹219 crore from ₹190 crore in the previous year. Profit after tax also saw significant growth, reaching ₹23 crore.

Expansion Plans

The company intends to invest ₹70 crore annually over the next three to four years to establish 4–5 large centers and 10–12 smaller centers each year, funded through internal accruals.

Market Sentiment and Analyst Insights

Suraksha Diagnostic Shares Crash 1% on Debut While the company benefits from its regional presence, its limited scale, geographic concentration, and inconsistent financial performance pose challenges. Analysts like Shivani Nyati of Swastika Investmart noted the IPO’s aggressive valuation compared to peers with broader reach and stronger financials.

Investors are advised to approach cautiously, as the market offers better opportunities among established diagnostic players. Despite the subdued listing, Suraksha Diagnostic’s growth potential in underserved regions and expansion plans may support its performance in the medium to long term.

ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets were the lead managers for the IPO, with Kfin Technologies serving as the registrar.

Suraksha Diagnostic Share Price and IPO Listing Live: Shares Trade in Red

Shares of Suraksha Diagnostic Ltd made their market debut on December 6, 2024, listing at a slight discount to the issue price of ₹441. The stock opened at ₹438 on the NSE, a 0.7% dip, and ₹437 on the BSE, a 0.9% drop.

Stock Performance

• As of 11:08 AM (NSE):
  • Price: ₹430.35 (-1.75%)
  • Day’s High: ₹449
  • Day’s Low: ₹424
  • Buy Orders: 4,03,400 shares
  • Sell Orders: 11,25,967 shares
• As of 10:30 AM (NSE):
  • Price: ₹430.05 (-1.82%)
• As of 10:30 AM (BSE):
  • Price: ₹430.30 (-1.53%)

IPO Details

Suraksha Diagnostic’s ₹846.25-crore IPO, priced at the upper range of ₹420–₹441, was entirely an offer for sale (OFS) by promoters and investors. A total of 19,189,330 shares were sold by promoters Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma, as well as investors OrbiMed Asia II Mauritius Ltd, Munna Lal Kejriwal, and Santosh Kumar Kejriwal. The IPO was subscribed 1.27 times overall.

Despite being a leading integrated diagnostic chain in East India, the stock’s subdued listing reflects cautious investor sentiment amid volatile market conditions.

Live Updates

• 10:13 AM: Listing ceremony for Suraksha Diagnostic shares took place at BSE.
• 10:11 AM: Shares were listed at ₹438 on NSE and ₹437 on BSE.

Market Context

Suraksha Diagnostic Shares Crash 1% on Debut The broader market remained flat during the day, with indices showing limited movement. Investors continue to monitor Suraksha Diagnostic’s stock as it navigates its initial trading sessions.