Suraksha Diagnostic Limited IPO

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They provide an integrated diagnostic and healthcare solution, combining pathology and radiology testing with medical consultation services. Their extensive operational network spans across Eastern India, including West Bengal, Bihar, Assam, and Meghalaya, ensuring accessibility and convenience for our customers. As of June 30, 2024, their network includes:
i. Central Reference Laboratory: Accredited by the College of American Pathologists.
ii. 8 Satellite Laboratories: Co-located with diagnostic centers.
iii. 215 Customer Touchpoints:
a. 49 Diagnostic Centers: Includes 13 hub centers, 11 medium centers, 23 small centers, and 2 centers under a public-private partnership (PPP) model.
b. 166 Sample Collection Centers: Primarily operated under a franchise model.

Accreditations

Their commitment to quality is reflected in the following accreditations:
College of American Pathologists: For their central reference laboratory.
National Accreditation Board for Testing and Calibration Laboratories (NABL): For three of their laboratories.
National Accreditation Board for Hospitals & Healthcare Providers (NABH): For three advanced diagnostic centers.

Patient Services and Reach

i. During Q1 FY2024, they served approximately 0.28 million patients, conducting 1.58 million tests.
ii. For FY2024, they served 1.14 million patients with 5.98 million tests.
iii. 95%+ Revenue from Core Geography: Kolkata and the rest of West Bengal contributed significantly to their revenue.

Competitive Position

Their market share in Eastern India’s diagnostics services market was 1.15%-1.30% in FY2024, compared to:
Dr. Lal Pathlabs: 5.30%-5.70% in North India.
Vijaya Diagnostic Centre: 2.20%-2.50% in South India.

This integrated approach ensures scalability, operational efficiency, and quality service delivery, positioning them as a trusted provider in the diagnostics market of Eastern India.

Objects of the Suraksha Diagnostic Limited IPO:

The Company will not receive any proceeds from the Offer for sale and all proceeds will go to the Selling Shareholders. Total number of shares issue: - i. Offer for sale is 19,189,330 shares.
DRHP of Suraksha Diagnostic Limited IPO
RHP of Suraksha Diagnostic Limited IPO

Suraksha Diagnostic Limited IPO Details:

Open Date: Nov 29 2024
Close Date: Dec 03 2024
Total Shares: 19,189,330
Face Value: ₹ 2 Per Equity Share
Issue Size: 846.25 Cr.
Lot Size: 34 Shares
Issue Price: ₹ 420 - 441 Per Equity Share
Listing At: NSE,BSE
Listing Date: Dec 06 2024

Promoters And Management:

Dr. Somnath Chatterjee, Chairman and Joint Managing Director of the Company, oversees overall planning and business strategies. A medical graduate from the University of Calcutta (1985), with 32+ years of experience in the medical and diagnostics industry, he has been associated with the Company since its inception. Ritu Mittal, Joint Managing Director and CEO of the Company, oversees end-to-end operations. A commerce graduate from the University of Calcutta (1996), she brings over 28 years of experience in the medical and diagnostics industry, including her prior association with Suraksha Diagnostic & Eye Centre Private Limited. Satish Kumar Verma, a Non-Executive, Non-Independent Director of the Company, oversees strategic planning and customer relationship management. A mechanical engineering graduate from Punjabi University (1969) with a postgraduate diploma (1971), he brings over 40 years of management experience and also serves as a director at Kanika Audio Visuals Private Limited.

Financials of Suraksha Diagnostic Limited IPO:

(In Cr.)
Particulars 30th June 2024 FY 2023-24 FY 2022-23 FY 2021-22
Revenue 60.73 218.70 190.13 223.19
EBITDA 21.72 73.61 47.47 65.23
EBITDA Margin 35.77% 33.66% 24.97 29.24%
PAT 7.66  23.12 6.06 20.82
PAT Margins 12.61% 10.57% 3.19% 9.33%
CFOA(OCF) 18.35 60.48 44.09 57.82
Cash Conversion Ratio (OCF/EBITDA) 84.48% 82.16% 92.87% 88.64%

Comparison With Peers:

Companies Revenue EBITDA PAT D/E Ratio MCap P/E
Suraksha Diagnostic Limited        (FY 2024) 218.70 Cr. 73.61 Cr. (33.61%) 23.12 Cr. (10.57%) 0.16 2296.76 Cr. 99.34
Dr Lal PathLabs (TTM) 2,346 Cr. 658 Cr. (28%) 407 Cr. (17%) 0.10 24,865  Cr. 62
Metropolis Healthcare (TTM) 1,285 Cr. 314 Cr. (24%) 149 Cr. (11.60%) 0.16 10,964 Cr. 74.10
Thyrocare (TTM) 571 Cr. 155 Cr. (27%) 89 Cr. (15.59%) 0.04 5,160 Cr. 58.10
Vijaya Diagnostic(TTM) 627 Cr. 253 Cr. (40%) 133 Cr. (21.21%) 0.40 11,846 Cr. 88.30

Recommendation on Suraksha Diagnostic Limited IPO:

Review and Recommendation of Suraksha Diagnostic Limited IPO by team IZ is 3/10.
 

Lead Manager of Suraksha Diagnostic Limited IPO:

  1. ICICI Securities Limited
  2. Nuvama Wealth Management Limited
  3. SBI Capital Markets Limited

Registrar of Suraksha Diagnostic Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Suraksha Diagnostic Limited Plot No. DG-12/1 Action Area 1D, Premises No. 02-0327 New Town, Rajarhat Kolkata 700 156 Phone: 91 33 66059750 Email: investors@surakshanet.com Website: https://www.surakshanet.com/

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