Upcoming IPO: Suraksha Diagnostic files DRHP with SEBI for IPO launch

Upcoming IPO: Suraksha Diagnostic Limited, the largest full-service and integrated diagnostic chain headquartered in East India has made a significant move by filing the draft red herring prospectus (DRHP) with capital markets regulator SEBI to float an initial public offering (IPO). This unique position, in terms of operating income as of Fiscal 2023, as per a CRISIL Report, sets it apart in the healthcare and diagnostic services industry.

According to the Draft Red Herring Prospectus (DRHP), the Initial Public Offering (IPO) of the Kolkata headquartered company consists of an Offer for Sale (OFS) of up to 19,189,330 Equity Shares by the Selling Shareholders. The OFS comprises up to 10,660,737 Equity Shares by the investor-selling shareholder - OrbiMed Asia II Mauritius Limited; up to 2,132,148 Equity Shares each by the promoter-selling shareholders - Dr Somnath Chatterjee, Ritu Mittal and Satish Kumar Verma, and the Individual Selling Shareholders, Munna Lal Kejriwal and Santosh Kumar Kejriwal offering up to 799,556 Equity Shares and up to 1,332,593 Equity Shares, respectively.

The objectives of the upcoming IPO are to carry out the Offer for Sale of up to 19,189,330 Equity Shares by the Selling Shareholders and to achieve the benefits of listing the Equity Shares on the Stock Exchanges.

ICICI Securities Limited, Nuvama Wealth Management Limited, and SBI Capital Markets Limited are the book-running lead managers for the issue. The equity shares are proposed to be listed on the BSE and NSE.

Suraksha Diagnostic financials

As of March 31, 2024, Suraksha Diagnostic Limited stands out as the sole provider of diagnostic services and the only company with a reference laboratory in East and North-East India to hold the College of American Pathologists accreditation. This unique position is further strengthened by three of its laboratories holding National Accreditation Board for Testing and Calibration Laboratories (NABL) certification, and two of its advanced diagnostic centres holding National Accreditation Board for Hospitals & Healthcare Providers (NABH) accreditation.

Suraksha offers a comprehensive range of 2,300+ tests covering various specialities and disciplines. Its diagnostic test menu includes 788 routine pathology tests ranging from basic biochemistry and haematology to 647 specialized pathology tests such as advanced biochemistry, histopathology, and molecular pathology; and 748 basic/intermediate radiology tests ranging from essential x-rays, ultrasonography (USG), and computerized tomography (CT) scans to 104 advanced radiology tests such as magnetic resonance imaging (MRI) scans and specialized CT scans, as of March 31, 2024. This extensive range of tests, coupled with its state-of-the-art radiology equipment, consisting of 24 CT and 13 MRI machines, reassures the audience of Suraksha's capabilities.

During Fiscal 2024, Suraksha Diagnostic Limited conducted an impressive approximately 5.98 million tests, serving a substantial approximately 1.14 million patients, demonstrating its extensive operational scale and reach.

According to the CRISIL Report, the diagnostics services market in India was estimated to be around ₹860 to ₹870 billion in Fiscal 2024 and is projected to grow at a CAGR of around 10% to 12% to reach approximately ₹1,275 to ₹1,375 billion by Fiscal 2028. The eastern and north-eastern India market, estimated at around ₹170 to ₹180 billion in Fiscal 2024, is projected to grow at a CAGR of around 10.5% to 12.5% to reach approximately ₹260 to ₹280 billion by Fiscal 2028, presenting a significant growth opportunity.