Suraksha Diagnostic Secures ₹254 Crore from Anchor Investors
Suraksha Diagnostic Ltd, an integrated diagnostic chain based in Kolkata, has successfully raised ₹254 crore from anchor investors ahead of its initial public offering (IPO). This significant funding comes just a day before the company opens its IPO for public subscription. The IPO is set to attract considerable attention, given the robust backing from prominent mutual funds and the company’s extensive operational network.
Anchor Investors Show Strong Support
The anchor investors for Suraksha Diagnostic’s IPO include well-known names such as Nippon India Mutual Fund, Kotak Mutual Fund, Aditya Birla Sun Life Mutual Fund, Quant Mutual Fund, and Carnelian Bharat Amritkaal Fund. According to a circular released on the Bombay Stock Exchange (BSE) website, the company has allocated 57.57 lakh equity shares to 16 different funds at a price of ₹441 each, which is the upper limit of the price band. This allocation totals ₹254 crore, showcasing strong investor confidence in the company’s growth potential.
The IPO is part of a larger offering, which amounts to ₹846 crore. The public subscription for the shares will commence on November 29 and conclude on December 3. Investors can purchase shares within a price range of ₹420 to ₹441. The company has structured its IPO as an Offer for Sale (OFS), where existing shareholders, including promoters and investors, will sell their shares without issuing new ones. This means that Suraksha Diagnostic will not receive any proceeds from the IPO; instead, the funds will go directly to the selling shareholders.
Company Overview and Market Position
Suraksha Diagnostic Ltd operates a comprehensive network that provides pathology and radiology testing, along with medical consultation services. As of March 31, 2024, the company boasts a flagship central reference laboratory, eight satellite laboratories, and 194 customer touchpoints. These touchpoints include 48 diagnostic centers and 146 sample collection centers, primarily franchised, across West Bengal, Bihar, Assam, and Meghalaya.
In the fiscal year 2024, Suraksha Diagnostic conducted approximately 5.98 million tests, serving around 1.14 million patients. This impressive volume of tests highlights the company’s significant role in the healthcare sector. With a market capitalization of around ₹2,300 crore at the upper end of the price band, Suraksha Diagnostic is well-positioned to leverage its extensive operational capabilities and expand its market share.
IPO Structure and Investor Allocation
The structure of Suraksha Diagnostic’s IPO is designed to cater to a diverse range of investors. Half of the issue size has been reserved for qualified institutional buyers (QIBs), while 35% is allocated for retail investors. The remaining 10% is set aside for non-institutional investors. This allocation strategy aims to attract a broad spectrum of investors, ensuring that the offering is accessible to both institutional and retail participants.
The book-running lead managers for the IPO include ICICI Securities Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd. Following the public subscription period, the equity shares are expected to be listed on both the BSE and NSE on December 6. This listing will mark a significant milestone for Suraksha Diagnostic as it seeks to enhance its visibility and credibility in the market.
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