Suraksha Diagnostics IPO day 3: GMP, subscription status to review. Apply or not?

Suraksha Diagnostics IPO: The initial public offering (IPO) of Suraksha Diagnostics Limited hit the Indian primary market on Friday last week. The public issue will remain open until December 3, 2024. This means investors have one day to apply for the public issue. The medical consultancy services company has fixed Suraksha Diagnostics IPO price band at ₹420 to ₹441 per equity share. The company aims to raise ₹846.25 crore from this initial offer, which is entirely Offer for Sale (OFS). So, Suraksha Diagnostics IPO size is ₹846.25 crore, but not a single rupee would come into the company's balance sheet. The net proceeds will go to the pockets of promoters offloading their stake in the company.

Meanwhile, company shares continue to trade at par in the grey market today. However, the book build issue received a tepid response in the first two days of bidding. According to Suraksha Diagnostics IPO subscription status, the public issue has been subscribed to 25 per cent.

Suraksha Diagnostics IPO GMP today

According to stock market observers, the company's shares are trading neither at a premium nor a discount in today's grey market. So, shares of Suraksha Diagnostics Limited are trading at par in the grey market today.

Suraksha Diagnostics IPO subscription status

By 3:00 PM on day 3 of bidding, the public issue had been subscribed 1:00 times, the retail portion 0.76 times, and the NII segment 0.87 times. The QIB had been booked 1.52 times.

Suraksha Diagnostics IPO review

On whether one should apply for the public issue or not, Arun Kejriwal, Founder of Kejriwal Research and Investment Services, said, “The public issue is looking expensive at current valuation. However, the CAPEX has been done for 18 to 24 months. So, smart investors are expected to wait for the share listing. So, I suggest investors follow the same and wait for Suraksha Diagnostics IPO listing and take any investment decision post-listing of the company shares.”

Shivani Nyati, Head of Wealth at Swastika Investmart, assigned the public issue an 'avoid' tag and said, "The company's financial performance is not so encouraging. It received heavy setbacks in the financial year 2022-23 and has shown some signs of recovery during FY24. However, valuations of the public issue also don't leave much on the table for the investors."

Besides, StoxBox and Anand Rathi have also assigned an 'avoid' tag to the public issue.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.