Suraksha Diagnostic gets Sebi's go ahead to raise funds through IPO

Integrated diagnostic chain Suraksha Diagnostic Ltd has received Sebi's go ahead to raise funds through an initial public offering (IPO), an update with the markets regulator showed on Monday.

The Kolkata-headquartered company's proposed IPO consists of an Offer-for-Sale (OFS) of up to 1.92 crore equity shares by promoters and investor shareholders, with no fresh issue component, according to the Draft Red Herring Prospectus (DRHP).

Under the OFS, promoters -- Somnath Chatterjee, Ritu Mittal, Satish Kumar Verma and investors -- OrbiMed Asia II Mauritius Ltd, Munna Lal Kejriwal and Santosh Kumar Kejriwal will offload shares.

The company, which had filed preliminary IPO papers in July, obtained the regulator's observation on September 30, the update showed.

In Sebi's parlance, obtaining its observations means the regulator's go ahead to float the public issue.

As per the draft papers, the company will not receive any proceeds and all the funds will go to the selling shareholders as the issue is completely an OFS.

Explaining the reason for going public, the company, in its draft papers, stated that the listing is aimed at achieving the benefit of listing equity shares on the stock exchanges and carrying out OFS for the selling shareholders.

Since the issue is completely an OFS, the company will not receive any proceeds and all the funds will go to the selling shareholders.

Suraksha Diagnostic offers a one-stop integrated solution for pathology and radiology testing and medical consultation services to its customers through its extensive operational network, consisting of a flagship central reference laboratory, 8 satellite laboratories and 194 customer touchpoints which include 48 diagnostic centres, and 146 sample collection centres (primarily franchised), across West Bengal, Bihar, Assam and Meghalaya as of March 31, 2024.

During fiscal 2024, it conducted about 5.98 million tests serving approximately 1.14 million patients.

ICICI Securities Ltd, Nuvama Wealth Management Ltd and SBI Capital Markets Ltd are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and NSE.