Suraksha Diagnostic Set to Launch IPO: Sebi Greenlights Rs 1.92 Crore Equity Sale – No Fresh Shares

Suraksha Diagnostic Ltd, an integrated diagnostic chain, has received approval from the Securities and Exchange Board of India (Sebi) to raise money through an Initial Public Offering (IPO), according to an update on Monday. The Kolkata-based company’s IPO will be an Offer-for-Sale (OFS) of up to 1.92 crore equity shares, meaning promoters and existing investors will sell their shares, but there will be no fresh shares issued. This information was revealed in the company’s Draft Red Herring Prospectus (DRHP).

The promoters selling their shares include Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma, along with investor shareholders like OrbiMed Asia II Mauritius Ltd, Munna Lal Kejriwal, and Santosh Kumar Kejriwal.

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Suraksha Diagnostic had filed its preliminary IPO papers in July and got the regulator’s approval on September 30. In Sebi’s terms, getting the “observations” means the company can go ahead with the public offering.

Since the IPO is completely an OFS, all the money raised will go to the shareholders selling their shares, and the company won’t receive any of the funds. The company is going public to list its shares on the stock exchanges and allow the selling shareholders to exit.

Suraksha Diagnostic provides an integrated solution for pathology and radiology tests, as well as medical consultation services. It operates through a central reference lab, 8 satellite labs, and 194 customer touchpoints, which include 48 diagnostic centers and 146 sample collection centers, mostly franchised, across West Bengal, Bihar, Assam, and Meghalaya, as of March 31, 2024.

During the fiscal year 2024, the company conducted around 5.98 million tests, serving approximately 1.14 million patients.

The IPO is being managed by ICICI Securities Ltd, Nuvama Wealth Management Ltd, and SBI Capital Markets Ltd. The equity shares are expected to be listed on both the BSE and NSE.