The Suraksha Diagnostics Limited Initial Public Offering (IPO) opened for subscription last Friday and will remain available for bidding until December 3, 2024. The IPO has caught attention, but the response from investors has been lukewarm so far.
Details of the IPO
The Suraksha Diagnostics IPO is priced between ₹420 and ₹441 per share. The company aims to raise ₹846.25 crore entirely through an Offer for Sale (OFS). This means the proceeds will go to the existing shareholders selling their stakes, and none of the funds will directly benefit the company’s operations or balance sheet.
Subscription Status
The IPO has received subscriptions amounting to just 0.18 times so far. This indicates that just 18% of the total shares available have been bid for. Breaking this down further:
- The retail investor portion was subscribed 0.32 times, showing some interest from individual investors.
- The Non-Institutional Investor (NII) category, often referred to as high-net-worth investors, saw a much weaker response, with just 0.08 times subscription.
In the grey market, Suraksha Diagnostics shares are currently trading at ₹0 premium or discount. This means there is no extra demand or buzz for the shares above the IPO price. For investors, a low or zero GMP often signals weak market sentiment and limited excitement about the IPO.
Key Details
Here’s a quick overview of the IPO:
- IPO Size: ₹846.25 crore
- Price Band: ₹420-₹441 per share
- Offer for Sale: This is a complete OFS, where current shareholders are divesting their stakes.
- Listing Date: Expected on December 10, 2024.
The Suraksha Diagnostics IPO has had a tepid response so far, with low investor interest and no grey market premium. While the company operates in the healthcare sector, which has growth potential, the high valuation and lack of fresh capital infusion make it less appealing. Investors should carefully analyze their goals and risk tolerance before deciding whether to apply for this IPO.
By staying informed about subscription updates and market sentiment, you can make a smarter investment decision. For now, it might be wise to adopt a wait-and-watch approach.
