Suraksha Diagnostic, supported by investment firm OrbiMed, has filed papers with SEBI to launch an IPO. The IPO size is expected to be around ₹850 crore.
Offer for Sale (OFS)
The IPO will include an Offer for Sale (OFS) of up to 19,189,330 shares by the selling shareholders. This includes 10,660,737 shares by OrbiMed Asia II Mauritius Limited, 2,132,148 shares each by promoters Dr. Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma, and 799,556 and 1,332,593 shares by individual shareholders Munna Lal Kejriwal and Santosh Kumar Kejriwal.
Background
OrbiMed, a US investment firm, invested in Suraksha in 2016. OrbiMed owns about 35% of the company. Founded in 1992, Suraksha offers pathology and radiology tests and medical consultations. The company has a central lab, 8 satellite labs, and 194 customer touchpoints, including 48 diagnostic centers and 146 sample collection centers in West Bengal, Bihar, Assam, and Meghalaya.
Earnings
In FY24, Suraksha earned ₹179.41 crore, up from ₹155.93 crore in FY23. The company conducted around 5.98 million tests for about 1.14 million patients in FY24.
The Indian diagnostic services market was valued at ₹86,000-87,000 crore in FY24 and is expected to grow by 10-12% annually, reaching ₹1.27 lakh-1.37 lakh crore by FY28. The market in eastern and northeastern India was valued at ₹17,000-18,000 crore in FY24 and is projected to grow by 10.5-12.5% annually, reaching ₹26,000-28,000 crore by FY28.
ICICI Securities, Nuvama Wealth Management, and SBI Capital Markets are the lead managers for the IPO.
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