Suraksha Diagnostic eyes Rs 846-cr via IPO; sets price band at Rs 420-441/share

New Delhi: Integrated diagnostic chain Suraksha Diagnostic Ltd on Tuesday said it has fixed a price band of Rs 420 to Rs 441 apiece for its Rs 846-crore initial public offering (IPO).

The initial share-sale will open for public subscription on November 29 and conclude on December 3 and the bidding for anchor investors will open for a day on November 28, the company announced.

The Kolkata-headquartered company's IPO consists of an Offer-for-Sale (OFS) of 19,189,330 equity shares worth Rs 846.25 crore, at the upper end of the price band, by promoters and investor shareholders, with no fresh issue component.

Under the OFS, promoters -- Somnath Chatterjee, Ritu Mittal, Satish Kumar Verma and investors -- OrbiMed Asia II Mauritius Ltd, Munna Lal Kejriwal and Santosh Kumar Kejriwal will offload shares.

Since the issue is completely an OFS, the company will not receive any proceeds and all the funds will go to the selling shareholders.

Explaining the reason for going public, the company said it is aimed at achieving the benefit of listing equity shares on the stock exchanges and carrying out OFS for the selling shareholders.

At the upper-end of the price band, the company's market capitalisation stands at around Rs 2,300 crore.

Suraksha Diagnostic offers a one-stop integrated solution for pathology and radiology testing and medical consultation services to its customers through its extensive operational network, consisting of a flagship central reference laboratory, 8 satellite laboratories and 194 customer touchpoints which include 48 diagnostic centres, and 146 sample collection centres (primarily franchised), across West Bengal, Bihar, Assam and Meghalaya as of March 31, 2024.

During fiscal 2024, it conducted about 5.98 million tests serving approximately 1.14 million patients.

Half of the issue size has been reserved for qualified institutional buyers (QIBs), 35 per cent for retail investors and the remaining 10 per cent for non-institutional investors.

ICICI Securities Ltd, Nuvama Wealth Management Ltd and SBI Capital Markets Ltd are the book-running lead managers to the issue. The equity shares are expected to be listed on BSE and NSE on December 6.