Suraksha Diagnostic
MainboardNSE₹846 Cr issue
-0.91%
Listing gain over issue price
Issue size
₹846 Cr
1 lot at cut-off
₹14,994
Lot size
34shares
Open
29 Nov 2024
Close
03 Dec 2024
Allotment
04 Dec 2024
Listing
06 Dec 2024
Listing performance
Issue price
₹441
Listed at
₹437
Listing-day close
₹441
Latest price
₹299.35
Close on 23 Oct 2026
Listing gain
-0.91%
Return since issue
-32.12%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Nov 2024 – 03 Dec 2024
- Listing date
- 06 Dec 2024
- Face value
- ₹2 per share
- Issue price
- ₹441 per share
- Lot size
- 34 shares
- Listing at
- NSE
- Total issue size
- ₹846 Cr
- Market cap at offer price
- ₹2,297 Cr
- Promoter holding
- 61.07% → 48.78% pre-issue → post-issue
- ISIN
- INE877V01027
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- ICICI Securities Ltd.
- Registered office
- Plot No.DG-12/1, Action Area 1D, Premises No.02-0327, New Town, Rajarhat, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 57,56,797 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 34 shares per lot, in multiples, at ₹441
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 34 | ₹14,994 |
| Retail (max) | 13 | 442 | ₹1,94,922 |
| S-HNI (min) | 14 | 476 | ₹2,09,916 |
| S-HNI (max) | 66 | 2,244 | ₹9,89,604 |
| B-HNI (min) | 67 | 2,278 | ₹10,04,598 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
57,56,797
Anchor portion
₹254 Cr
at ₹441 per share
Valuation and performance
Valuation at offer price
₹441 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.44 | 5.89 |
| P/E (×) | 99.32 | 74.87 |
| Price to book (×) | 13.10 | — |
| Market cap | — | ₹2,297 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 14.09%
- ROCE
- 21.46%
- Debt / equity
- 0.20
- PAT margin
- 10.57%
- NAV per share
- ₹33.66
- Price to book
- 13.10
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Suraksha Diagnostic
Suraksha Diagnostic Limited is a diagnostic services provider offering one-stop integrated solutions for pathology and radiology testing and medical consultation services through a network of a flagship central reference laboratory, 8 satellite laboratories, 49 diagnostic centres, and 166 sample collection centres (primarily franchised) across West Bengal, Bihar, Assam, and Meghalaya. The company was incorporated as a private limited company in March 2005 and converted to a public limited company in June 2024. It generates revenue primarily through sales of diagnostic services including pathology tests (49.75% of revenue in Q3 FY2024-25), radiology services including MRI, CT, DEXA scans (46.52% in Q3 FY2024-25), and other services. In Fiscal 2024, the company generated ₹2,187.09 million in revenue from operations, with 93.83% from B2C (individual consumers) and 6.17% from B2B (institutional) segments.
Company Analysis
from RHPSuraksha Diagnostic Limited provides integrated pathology and radiology testing services including X-rays, CT scans, MRI scans, and vaccination services across East India.
Suraksha Diagnostic Limited is a diagnostic services provider offering one-stop integrated solutions for pathology and radiology testing and medical consultation services through a network of a flagship central reference laboratory, 8 satellite laboratories, 49 diagnostic centres, and 166 sample collection centres (primarily franchised) across West Bengal, Bihar, Assam, and Meghalaya. The company was incorporated as a private limited company in March 2005 and converted to a public limited company in June 2024. It generates revenue primarily through sales of diagnostic services including pathology tests (49.75% of revenue in Q3 FY2024-25), radiology services including MRI, CT, DEXA scans (46.52% in Q3 FY2024-25), and other services. In Fiscal 2024, the company generated ₹2,187.09 million in revenue from operations, with 93.83% from B2C (individual consumers) and 6.17% from B2B (institutional) segments.
Diagnostics and pathologyMedical imaging and radiologyHealthcare services
Objects of the Issue
- Carry out the sale and transfer of 19,189,330 Equity Shares of face value ₹2 each by the Selling Shareholders ₹8,462.49 million p.21
- Achieve the benefits of listing the Equity Shares on the Stock Exchanges p.21
- General corporate purposes p.80
- The Offer is an Offer for Sale by Selling Shareholders. Our Company will not receive any proceeds from the Offer. The objects of the Offer are to (i) carry out the Offer for Sale of 19,189,330 Equity Shares of face value ₹ 2 each aggregating to ₹8,462.49 million* by the Selling Shareholders; and (ii) achieve the benefits of listing the Equity Shares on the Stock Exchanges. ₹8,462.49 million (aggregate offer size from Selling Shareholders) p.122
- Offer for Sale by Selling Shareholders p.409
Issue Structure
- Total Issue
- 19,189,330 Equity Shares of face value ₹2 each aggregating to ₹8,462.49 million
- Fresh Issue
- Nil (100% Offer for Sale)
- Offer for Sale
- 19,189,330 Equity Shares of face value ₹2 each aggregating to ₹8,462.49 million
- Price Band
- ₹420 per Equity Share (Floor Price) to ₹441 per Equity Share (Cap Price)
- Lot Size
- 34 Equity Shares and in multiples of 34 Equity Shares thereafter
- Face Value
- ₹2 each
Business Model
The company earns revenue through sales of diagnostic services. In the three-month period ended June 30, 2024, 93.48% of revenue came from B2C (Business-to-Consumer/Individual Consumer Business Segment) and 6.52% from B2B (Business-to-Business/Institutional Business Segment). Services include pathology testing, radiology imaging (X-rays, ultrasound, CT scans, MRI scans, DEXA scans), and vaccination services. The company operates through diagnostic centres where patients can directly access services, and sample collection centres that are primarily franchised.
Business Segments
Provision of diagnostic and radiology services directly to individual consumers and patients
Provision of diagnostic services to hospitals, corporate employers, pharmaceutical companies, insurance companies, and other healthcare institutions through laboratory management agreements and PPP contracts
Pathology testing services
Radiology imaging services including X-rays, ultrasound, CT scans, MRI scans, and DEXA scans
Individual patients who walk into diagnostic laboratories or customer touchpoints, use home collection services, or avail medical consultation services through polyclinics
Business-to-business customers
Pathology testing services
Radiology services including advanced imaging
Provides 788 routine pathology tests and 664 specialized pathology tests covering basic biochemistry, hematology, advanced biochemistry, histopathology, and molecular pathology
Provides 766 basic/intermediate radiology tests and 119 advanced radiology tests including x-rays, USG, CT scans (24 machines), and MRI scans (13 machines)
Provides medical consultation through polyclinics with specialized doctors at 44 diagnostic centers as of June 30, 2024
Pathology testing involves reporting diagnostic information based on collected samples (blood, urine, stool, and so on) and analysing them in a laboratory to arrive at useful clinical information. Includes routine and specialised tests.
Radiology involves procedures ranging from simple X-rays and ultrasounds to specialised tests such as CT and PET-CT scans, which help diagnose diseases by indicating anatomical and physiological changes in a patient's body.
Provides radiology testing services including basic and intermediate radiology tests (X-rays, ultrasounds, CT scans) and advanced radiology tests (MRI scans, specialized CT scans). The company operates 24 CT machines and 13 MRI machines as of June 30, 2024.
Conducts routine pathology tests including basic biochemistry and haematology, and specialized pathology tests including advanced biochemistry, histopathology, and molecular pathology. Offers 788 routine pathology tests and 664 specialized pathology tests as of June 30, 2024.
Provides medical consultation services through omnichannel modes (online and offline) via polyclinic chambers housed at diagnostic centres. As of June 30, 2024, 44 diagnostic centres house 126 polyclinic chambers hosting 750+ specialized doctors.
Direct individual consumer business comprising patients who walk into diagnostic centres, use home collection services, or avail medical consultation services through polyclinics. Contributed 93.83% of revenue from operations in FY24.
Institutional customer business including smaller laboratories, hospitals, corporate bodies, government employees covered under health schemes, and outsourced radiology services to nursing homes. Contributed 6.17% of revenue from operations in FY24.
Pathological and radiological testing services conducted through diagnostic centres
Pathology testing services including various diagnostic tests across pathology disciplines
Radiology services including CT scans (24 machines), MRI scans (13 machines), X-ray, USG and other imaging services
Medical consultation services through 750+ specialized doctors housed in 44 diagnostic centres
COVID-19 testing and vaccination services
Revenue from sale of diagnostic services including pathology, imaging, COVID-19 testing and vaccination
SWOT Analysis
Strengths
- • Integrated diagnostic solutions across pathology, radiology, and medical consultation(p.21)
- • Growing market presence with multi-state operational network(p.21)
- • Strong EBITDA margins and improving profitability(p.24)
- • Increasing revenue per patient over time(p.24)
- • Extensive operational network across Eastern India with 49 diagnostic centres, 9 laboratories, and 215 customer touchpoints(p.125)
- • Comprehensive diagnostic services offering 2,300+ tests with integrated pathology and radiology capabilities(p.125)
- • High-quality technical infrastructure with 500+ medical equipment and capacity to handle 30,000+ pathology samples and 5,000+ scans daily(p.125)
- • Strong repeat rate of over 49% demonstrating high customer retention and trust(p.125)
- • Strong profitability with EBITDA margin of 33.66% in FY2024 and 35.77% for Q1 FY2025(p.138)
- • Strong return on capital employed of 21.46% in FY2024 and return on equity of 14.09%(p.138)
- • Trained workforce with 23 laboratory doctors, 255 radiologists and other reporting doctors, and 529 technical staff(p.125)
- • Track record of profitability across multiple fiscal years with revenues of ₹2,187.09 million in FY2024(p.138)
- • Largest full-service integrated diagnostic chain in East India by operating income(p.208)
- • Highest revenue per patient among peers in FY24(p.207)
- • Diversified pathology and radiology service offerings(p.208)
- • Highest CAGR growth in non-covid revenues among peers (FY22-FY24)(p.211)
- • Strong B2C focus with 94% of revenues from direct customers(p.210)
- • Only CAP-accredited diagnostic company in East India(p.198)
- • Strong OPBDIT margin improvement in FY24(p.211)
- • Dominant market position in core geography with significant growth headroom(p.225)
- • Track record of consistent profitability and strong financial performance(p.225)
- • Unleveraged balance sheet with strong net debt-to-equity ratio(p.225)
- • Integrated one-stop diagnostic solution with pathology, radiology and medical consultation(p.226)
- • Technologically advanced infrastructure with AI-enabled facilities and multiple accreditations(p.227)
- • Strong brand reputation and high customer retention through B2C focus(p.227)
- • Experienced management team with 32+ years and 28+ years in diagnostics(p.223)
- • Hub-and-spoke model enabling economies of scale and geographic expansion(p.222)
- • Established diagnostic services network with significant fixed assets(p.306)
- • Stable revenue generation from diagnostic services(p.309)
- • Experienced promoter leadership with adequate industry experience(p.288)
Weaknesses
- • Extreme geographic concentration with 95.48% of revenue from West Bengal(p.36)
- • Small market share in primary market (East India)(p.38)
- • Audit qualifications and emphasis of matters from statutory auditors(p.39)
- • Past regulatory non-compliances and violations of Companies Act(p.40)
- • Significant dependence on B2B customers with high cancellation risk(p.39)
- • Missing corporate records and filing discrepancies(p.45)
- • Pledged shares creating control dilution risk(p.41)
- • Untraceable educational qualifications of key personnel(p.49)
- • Missing corporate records and filing lapses related to sweat equity issuance in 2011(p.100)
- • Regional concentration of all revenue generation in Eastern India with 100% of revenue from operations(p.129)
- • High dependence on B2C segment which comprises 93.48% to 96.01% of revenue leaving limited B2B revenue diversification(p.138)
- • Pending transmission of shares held by deceased shareholder requiring completion of probate(p.100)
- • Market share concentration in single region limits growth(p.202)
- • Significantly lower market share compared to pan-India players(p.201)
- • Limited geographic presence with only 14 districts served(p.210)
- • Smaller scale of operations with only 9 labs(p.204)
- • Lower absolute operating income compared to major competitors(p.211)
- • Relatively lower PAT margin compared to some peers(p.214)
- • Heavy geographic concentration in West Bengal with 95.48% of FY24 revenue(p.220)
- • Dependence on few suppliers with top 10 suppliers contributing >50% of procurement(p.241)
- • Trademark ownership not yet transferred; currently owned by group company(p.243)
- • Smaller scale compared to listed peers; significantly lower revenue than Dr Lal PathLabs and Metropolis(p.242)
- • High capital requirements for medical equipment with dependency on reagent rental agreements(p.241)
- • Alleged financial irregularities and vendor fraud requiring asset write-off(p.295)
- • Audit trail feature not enabled in accounting software(p.295)
- • Past contravention of Companies Act Section 185 on director guarantees(p.297)
- • Suspended trading history of promoter group entities(p.271)
- • No dividend history and uncertain dividend policy(p.291)
Opportunities
- • High growth potential in diagnostics market (10-12% CAGR)(p.21)
- • Strong growth in East and North-East India market (10.50-12.50% CAGR)(p.21)
- • West Bengal market projected significant growth to ₹95-100 billion(p.21)
- • Diagnostic services market in Eastern India poised for growth with organized diagnostic chains expanding(p.125)
- • Indian diagnostic industry market expected to grow at 10-12% CAGR from FY24 to FY28 reaching ₹1,275-1,375 billion(p.138)
- • Chained diagnostic players expected to grow faster than overall industry between FY24 and FY28(p.138)
- • Rising middle and high-income population expected to reach 95% by FY31 driving consumption growth and healthcare demand(p.148)
- • East and Northeast states experiencing strong GDP growth with East region growing at 4.3% CAGR exceeding India's 3.4%(p.152)
- • Government focus on increasing public healthcare expenditure to 2.5-3% of GDP by 2025 supporting infrastructure development(p.158)
- • Eastern states recording high incidence of Non-Communicable Diseases requiring considerable healthcare services(p.156)
- • High under-penetration of diagnostic services in East India(p.195)
- • Significant disparity in accredited lab distribution favoring expansion(p.198)
- • Low diagnostic test penetration in non-metro regions(p.185)
- • Massive under-penetration in rural areas with only 24% of diagnostics revenue(p.172)
- • Rising incidence of non-communicable diseases driving demand for diagnostics(p.185)
- • Growing health awareness and preventive healthcare focus post-Covid-19(p.184)
- • Expanding government PPP model for diagnostic services in underserved areas(p.192)
- • West Bengal diagnostics market fragmented with opportunity for consolidation(p.199)
- • Expansion potential in underserved eastern and north-eastern India markets(p.229)
- • Consolidation opportunity through acquisitions of standalone diagnostic centers(p.229)
- • Growth in B2B segment through institutional partnerships and government schemes(p.231)
- • Revenue expansion through polyclinic chambers and omnichannel medical consultation(p.230)
- • Digital transformation and AI/ML integration for customer experience enhancement(p.230)
- • Penetration in underserved West Bengal sub-urban and rural areas with newer centers(p.229)
- • Expansion of diagnostic centre operations(p.310)
- • Capital work-in-progress indicating ongoing expansion(p.300)
Threats
- • Highly competitive diagnostics industry with larger competitors(p.38)
- • Regional economic downturn or political unrest in West Bengal(p.37)
- • Risk of increased competitive pricing pressure(p.38)
- • Dependence on third-party vendors for equipment and supplies(p.20)
- • Risk of medical negligence claims and litigation(p.49)
- • Suspension of securities of Promoter Group members in past(p.37)
- • Regulatory proceedings risk related to corporate filing lapses and potential penalties from regulatory authorities(p.100)
- • Potential pledge invocation on promoter shareholding could dilute aggregate shareholding and trigger open offer requirement(p.107)
- • India's healthcare expenditure remains significantly below global standards at 3.3% of GDP compared to world average of 10.9%(p.157)
- • High out-of-pocket healthcare spending in India at 33.3-49.8% of current healthcare expenditure creating affordability challenges(p.158)
- • India's bed density of 15 per 10,000 people significantly lags global median of 29 beds and other developing countries(p.158)
- • Price capping through National Essential Diagnostic List (NEDL)(p.186)
- • Intense competition from larger pan-India diagnostic chains(p.166)
- • Aggressive expansion and consolidation by larger competitors(p.191)
- • Steep discounts by online players eroding margins(p.186)
- • Shortage of skilled healthcare professionals in diagnostic sector(p.185)
- • High capital requirements for advanced diagnostic equipment(p.186)
- • High out-of-pocket expenses limiting patient access in rural areas(p.193)
- • Intense competition from organized diagnostic chains in pathology and radiology(p.241)
- • Regulatory changes and compliance requirements in healthcare and diagnostics(p.246)
- • Dependence on specific equipment vendors and technology platforms(p.227)
- • Exposure to changes in reimbursement rates from government health schemes(p.237)
- • Risk from unorganized diagnostic providers competing on price(p.241)
- • Potential regulatory restrictions on imaging and diagnostic procedures(p.247)
- • Pending criminal investigation into financial irregularities(p.298)
- • Regulatory compliance risk from past Section 185 violation(p.297)
- • Significant lease obligations constraining financial flexibility(p.300)
- • Concentration of shareholding with limited public float post-IPO(p.286)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dr. Somnath Chatterjee | Promoter Selling Shareholder | 9.09% | 4.99% |
| Ritu Mittal | Promoter Selling Shareholder | 19.99% | 15.89% |
| Satish Kumar Verma | Promoter Selling Shareholder | 14.93% | 10.84% |
| Dr. Somnath Chatterjee | Promoter | — | — |
| Ritu Mittal | Promoter | — | — |
| OrbiMed Asia II Mauritius Limited | Investor Selling Shareholder | 33.35% | — |
| Dr. Somnath Chatterjee | Promoter | 9.09% | 4.99% |
| Ritu Mittal | Promoter | 19.99% | 15.89% |
| Satish Kumar Verma | Promoter | 14.93% | 10.84% |
| Tinni Investments Limited | Promoter Group | 4.62% | 4.62% |
| Dneema Overseas Private Limited | Promoter Group | 3.21% | 3.21% |
| Sarla Kejriwal (nominee and legal heir of late Kishan Kumar Kejriwal) | Promoter Group | 9.23% | 9.23% |
| Dr. Somnath Chatterjee | Promoter | — | — |
| Ritu Mittal | Promoter | — | — |
| Dr Somnath Chatterjee | Promoter | 9.09% | — |
| Ritu Mittal | Promoter | 19.99% | — |
| Satish Kumar Verma | Promoter | 14.93% | — |
| Dr. Somnath Chatterjee | Promoter | 9.57% | — |
| Ritu Mittal | Promoter | 22.87% | — |
| Satish Verma | Promoter | 19.38% | — |
| Legal heir(s) of late Mr. Kishan Kumar Kejriwal | Promoter | 11.15% | — |
| OrbiMed Asia II Mauritius Limited | Promoter Group | 19.51% | — |
| Dr. Somnath Chatterjee | Promoter | — | — |
| Ritu Mittal | Promoter | — | — |
| OrbiMed Asia II Mauritius Limited | Shareholder | — | — |
| OrbiMed Asia II Mauritius Limited | Selling Shareholder | — | not more than 24.99% |
| Dr. Somnath Chatterjee | Selling Shareholder/Promoter | — | — |
| Ritu Mittal | Selling Shareholder/Promoter | — | — |
| Satish Kumar Verma | Selling Shareholder | — | — |
| Suman Verma | Selling Shareholder | — | — |
| Dr. Somnath Chatterjee | Promoter Selling Shareholder | — | — |
| Ritu Mittal | Promoter Selling Shareholder | — | — |
| Satish Kumar Verma | Promoter Selling Shareholder | — | — |
| OrbiMed Asia II Mauritius Limited | Investor Selling Shareholder | — | — |
| Munna Lal Kejriwal | Individual Selling Shareholder | — | — |
| Santosh Kumar Kejriwal | Individual Selling Shareholder | — | — |
Leadership
Dr. Somnath Chatterjee · Promoter/Joint Managing Director
Ritu Mittal · Promoter/Joint Managing Director/CEO
Satish Kumar Verma · Promoter
Mamta Jain · Company Secretary and Compliance Officer
Amit Saraf · Chief Financial Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Suraksha Diagnostic IPO FAQs
What is the lot size of Suraksha Diagnostic IPO?
The minimum lot size of Suraksha Diagnostic IPO is 34 shares. One lot costs ₹14,994 at the cut-off price.
When does Suraksha Diagnostic IPO open and close?
Suraksha Diagnostic IPO opened for subscription on 29 Nov 2024 and closed on 03 Dec 2024.
What is the listing date of Suraksha Diagnostic IPO?
Suraksha Diagnostic IPO listed on 06 Dec 2024.