“Suraksha Diagnostic Sets Stage for IPO: Files DRHP with SEBI, Poised to Transform Healthcare Sector”

Suraksha Diagnostic Limited, the largest integrated diagnostic chain in East India, has filed a draft red herring prospectus (DRHP) with SEBI for an initial public offering (IPO). This move highlights Suraksha’s unique position in the healthcare and diagnostic services industry, backed by its impressive operating income as of Fiscal 2023, according to a CRISIL Report.

IPO Details

The IPO includes an Offer for Sale (OFS) of up to 19,189,330 equity shares by the selling shareholders. This includes:

• 10,660,737 equity shares by investor OrbiMed Asia II Mauritius Limited
• 2,132,148 equity shares each by promoters Dr. Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma
• 799,556 equity shares by Munna Lal Kejriwal
• 1,332,593 equity shares by Santosh Kumar Kejriwal

The purpose of the IPO is to facilitate the Offer for Sale and to benefit from listing the equity shares on the stock exchanges.

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

Suraksha Diagnostic Financials

As of March 31, 2024, Suraksha Diagnostic Limited is the only diagnostic service provider in East and North-East India with the College of American Pathologists accreditation. Three of its laboratories are certified by the National Accreditation Board for Testing and Calibration Laboratories (NABL), and two advanced diagnostic centers hold National Accreditation Board for Hospitals & Healthcare Providers (NABH) accreditation.

Suraksha offers over 2,300 tests across various specialties. These include:

• 788 routine pathology tests (basic biochemistry and hematology)
• 647 specialized pathology tests (advanced biochemistry, histopathology, molecular pathology)
• 748 radiology tests (x-rays, ultrasonography, CT scans)
• 104 advanced radiology tests (MRI scans, specialized CT scans)

Suraksha boasts state-of-the-art radiology equipment, including 24 CT machines and 13 MRI machines. In Fiscal 2024, the company conducted about 5.98 million tests and served approximately 1.14 million patients.

Market Growth

The diagnostic services market in India was valued at around ₹860 to ₹870 billion in Fiscal 2024. It is expected to grow at a CAGR of 10% to 12%, reaching ₹1,275 to ₹1,375 billion by Fiscal 2028. In East and North-East India, the market was worth around ₹170 to ₹180 billion in Fiscal 2024 and is projected to grow at a CAGR of 10.5% to 12.5%, reaching ₹260 to ₹280 billion by Fiscal 2028. This presents a significant growth opportunity for Suraksha Diagnostic Limited.