Suraksha Diagnostics IPO GMP Today: GMP, Price Band, Subscription Status & Expert Review
Suraksha Diagnostics IPO GMP Today:Suraksha Diagnostics IPO, with a price band of ₹420-441, saw weak investor interest, being subscribed only 18% on Day 2. The GMP stands at 0%, and analysts advise caution due to its high valuation. IPO closes on December 3, with listing on December 6.
Suraksha Diagnostics IPO GMP Today: Suraksha Diagnostics’ IPO, launched on November 29, 2024, has failed to generate excitement among investors. As of Day 2, the offering has been subscribed only 18%, with retail subscriptions at 32%, while the QIBs and NIIs have shown little to no interest. This weak demand raises concerns about the future performance of the stock, especially considering that the company will not receive any funds from the offering due to the IPO being a complete Offer for Sale (OFS).
Suraksha Diagnostics IPO GMP Today: Subscription Breakdown: A Missed Opportunity?
By 11:22 AM on Day 2, the Suraksha Diagnostics IPO received bids for 23,96,082 shares against the 1,34,32,533 shares on offer. The retail portion, which accounts for a significant portion of the demand, has attracted some attention with a 32% subscription, but this pales in comparison to the overall issue size. QIBs have not participated, and NIIs are showing a mere 8% interest, signaling a lack of confidence from institutional investors, who typically play a pivotal role in determining the success of an IPO.
The pricing band for the IPO has been set between ₹420 and ₹441 per share, with a minimum bid size of 34 shares. However, the Grey Market Premium (GMP) currently stands at ₹0, indicating that the stock is not expected to trade at a significant premium in the unlisted markets. This signals that investors are skeptical about the potential returns from this offering.
A Complete OFS: Limited Upside Potential
The Suraksha Diagnostics IPO is a complete OFS, meaning that no fresh capital will flow to the company. The proceeds from the sale will only benefit the existing shareholders, making it more of a liquidation event than a growth capital raise. This structure tends to dampen investor enthusiasm, as it limits the stock’s potential for future growth and price appreciation.
Suraksha Diagnostics: Key Business Highlights
Suraksha Diagnostics operates as the largest diagnostic chain in Eastern India, with an extensive network of laboratories and diagnostic centers. In FY24, the company reported revenue of ₹219 crore, an increase from ₹190 crore the previous year, along with a profit after tax (PAT) of ₹23 crore. The Indian diagnostics market is expected to grow at a rate of 10-12%, offering a potential growth opportunity. However, Suraksha’s focus is currently confined to Eastern India, which limits its market potential.
Expert Opinions on Suraksha Diagnostics IPO
Most analysts have raised concerns about the IPO's high valuation, especially since it is an OFS and will not result in any capital infusion for the company. Analysts from Anand Rathi and Swastika Investmart have recommended avoiding the offering. "Given Suraksha Diagnostics’ limited geographical footprint and the increasing competition in the diagnostics sector, this IPO appears overpriced," said an analyst from Swastika Investmart.
Is the Suraksha Diagnostics IPO Worth It?
With a weak subscription response, a stagnant GMP, and an overpriced valuation, the Suraksha Diagnostics IPO presents a less-than-ideal investment opportunity. Investors are advised to exercise caution and explore alternative investment options, particularly those that offer better growth potential and broader market presence.
