Suraksha Diagnostics IPO: The Suraksha Diagnostic Limited IPO price band has been fixed in the range of ₹420 to ₹441 per equity share of the face value of ₹2. The Suraksha Diagnostic IPO date of subscription is scheduled for Friday, November 29, and will close on Tuesday, December 3. The allocation to anchor investors for the Suraksha Diagnostic IPO is scheduled to take place on Thursday, November 28.

Suraksha Diagnostics Ltd Company Details

The company provides comprehensive, integrated pathology and radiology testing solutions and medical consultation services. It leverages its extensive operational network to serve customers effectively. This one-stop approach ensures convenience and accessibility for all clients’ healthcare needs.

According to the Red Herring Prospectus (RHP), Suraksha Diagnostics’s listed peers include Dr Lal PathLabs, which has a price-to-earnings (P/E) ratio of 77.08, Metropolis Healthcare, with a P/E of 89.61, Thyrocare, at 65.52, and Vijaya Diagnostic, with a P/E of 86.40.

Suraksha Diagnostics has shown impressive growth, with its revenue increasing by 14.75 per cent. More notably, the company’s profit after tax (PAT) witnessed an extraordinary jump of 281.32 per cent between the financial years ending March 31, 2024, and March 31, 2023.

As of June 30, 2024, the operational network includes a flagship central reference laboratory and eight satellite laboratories at diagnostic centres. There are also 215 customer touchpoints, which comprise 49 diagnostic centres and 166 sample collection centres, primarily operated through franchises. 

This extensive network spans the states of West Bengal, Bihar, Assam, and Meghalaya, facilitating efficient service delivery and enhanced access to diagnostic testing in the region. In the three months ending in 2024, the firm performed around 1.58 million tests, serving about 280,000 patients. Notably, 95.34 per cent of their revenue from operations originated from their primary region, which includes Kolkata and the surrounding areas of West Bengal.

The diagnostics industry’s hub-and-spoke model, particularly in pathology, is a centralised approach to managing diagnostic testing and laboratory services. The central laboratory serves as the hub in this structure, where samples are received, processed, and analysed. Smaller satellite laboratories, or spokes, are responsible for collecting and transporting samples to the central facility. This model streamlines operations, enhances efficiency, and can lead to faster turnaround times for test results, as highlighted in a recent CRISIL report.