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Suraksha Diagnostics IPO Subscription Status and Allotment Insights

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Suraksha Diagnostics IPO: Subscription Status and Allotment Insights The Suraksha Diagnostics IPO recently closed, attracting attention due to its moderate subscription levels and allotment dynamics. This article dives into the IPO's final subscription data, allotment chances, and key highlights to help investors understand its performance and prospects. Overview of the Suraksha Diagnostics IPO The Suraksha Diagnostics IPO opened on November 29 and closed shortly after. Here are the primary details: Face Value: ₹41 per share. Total Issue Size: ₹846 crore, entirely through Offer for Sale (OFS). Number of Shares Offered: 34 shares per lot. Despite its smaller size compared to recent IPOs, the response from investors varied across categories, with noticeable gaps in subscription levels early on. Subscription Status: A Mixed Response The subscription data revealed contrasting reactions across different investor segments: Initial Subscription Trends On the first two days, the IPO garnered only 25% subscription. Qualified Institutional Buyers (QIBs) showed no interest initially. High Net-worth Individuals (HNIs) subscribed only 13%. The Retail segment saw 45% subscription. These figures underscored a lukewarm reception, reflecting low demand and valuation concerns. Final Day Surge The last day brought some relief, as QIBs stepped in to "save the IPO." Here’s how the numbers shaped up: QIB Category: 1.74x subscription, contributing ₹94 crore. HNIs: Subscribed 1.40x overall, translating to ₹178 crore. Big HNI Segment: Achieved a higher 1.53x subscription, showcasing better engagement. Retail Investors: Subscription closed at 94%, with 62 lakh shares subscribed against an offer of 67 lakh shares. The collective final subscription rate stood at 1.27x, ensuring the IPO’s closure without withdrawal. Allotment Chances: What Investors Can Expect Allotment for Suraksha Diagnostics IPO is expected to be straightforward, thanks to the moderate subscription levels: QIB and HNI Segments Investors in the QIB and Big HNI categories have high chances of allotment. Smaller HNI applications saw partial allotments at 1.16x subscription levels. Retail Segment Retail investors who applied for up to 13 lots are likely to receive full allotment. Even those who applied for multiple lots should receive their desired shares. With the allotment date set for December 4, investors can check their status on KFin Technologies, the IPO's registrar, for updates. Grey Market Premium (GMP): Signs of Movement The grey market for Suraksha Diagnostics IPO initially showed no activity. However, a late uptick brought the GMP to around ₹45 per share. While this reflects improved sentiment, it remains cautious optimism as listing day approaches. Key Factors Influencing the IPO's Response Valuation Concerns: Many investors cited a lack of valuation comfort, which hampered enthusiasm for the IPO. OFS Structure: The IPO being entirely OFS meant no fresh funds were raised, reducing appeal for long-term growth prospects. Market Sentiment: Recent underwhelming IPO performances have left investors wary, impacting subscription levels. Upcoming IPOs to Watch Out For As December progresses, the IPO market gears up for more activity. Here’s a look at what’s on the horizon: Avanse Financial Services IPO: Expected to open soon, with strong anticipation from investors. Mamata Machinery IPO: A smaller offering with niche appeal. Vishal Mega Mart IPO: Likely to debut in the second or third week of December. These upcoming IPOs, especially larger ones, may reignite interest among retail and institutional investors.

Suraksha Diagnostics IPO: Subscription Status and Allotment Insights Introduction to the organization: Suraksha Diagnostics

The Divisional Representatives IPO, according to IPO Watch, closed recently with its interference in terms of allotment and subscription orders being moderate and of interest. This paper seeks to conclude with the final allotment opportunities as well as the subscription data of the IPO with the objective on being the performance and prospect of the IPO under focus.

Suraksha Diagnostics IPO: Performance and prospects, and how to think about it

The Suraksha Diagnostics IPO opened on November 29 and closed shortly after. Key details include the following: What are the other Details:

Face Value: Per Equity Share: 41

Total Issue Size: 846 Crore, Offer for Sale (OFS) entirely by sale.

Number of Shares Offered: 34 shares per lot.

And even if it was smaller in size than the previous some IPO, the response to the investors anyway was different as well the categories and even the size of the subscriptions for each equally had gaps early on.

Over Subscripotion: A mixed Investor Response

Overall once the substriction data was released, different segments of subscribers reaction were in stark contrast to each other :

First two days of the IPO subscription, subscribed 25% only.

And Qualified Institutional Buyers (QIB) did not have an initial appetite.

And HNIs only subscribed for 13%.

Retail segment posted 45% subscriptions.

These figures can help appreciate the fact that the subscription was not fully taken up and therefore reaction and demand was not satisfactory and in fact the valuations were questionable.

Final Day Surge

The last day provided some comfort, as QIBs came in to ‘salvage the IPO.’ Here’s what the numbers looked like at the end:

QIB Category: 1.74x oversubscription, along with a contribution of ₹94 crore.

HNIs: Subscribed 1.40 times the quota, which translates to ₹178 crore.

Big HNI Segment: Experienced a relatively higher subscription of 1.53 times, demonstrating significant interest.

Retail Investors: The subscription closed at 94% mark with total of 62 lakhs of shares being subscribed whilst the number of shares offered at the time was 67 lakhs.

The overall final subscription rate averaged at 1.27x thus ensuring the conclusion of the IPO without any form of retreat.

Allotment Chances: What Investors Can Expect

Allotment for Issuer Suraksha Diagnostics is considered as a simple task due to the average subscription rates for that IPO.

QIB and HNI Segments

Investors participating in the different QIB and Big HNI categories are highly likely to receive allotments.

Smaller HNI applications registered 1.16x oversubscription but received partial allotments.

Retail Segment

Retail applicants asking for not more than 13 lots of shares would likely be able to get full allotment.

Even those applicants who were able to apply for many lots would get lots of shares allotted to them.

With the allotment date scheduled for December 4, the investors will be able to watch for updates on their allotments on KFin Technologies, who is the registrar of the IPO.

GMP: Market Vibe Changes

Suraksha Diagnostic IPO had started on a rough base as there was no movement in the grey market. However, a last minute surge did increase the GMP to about ₹45 per share. Although it is a sign of better market perception, it is still a case of being cautiously optimistic with the listing day lurking around the corner.

Company Factors that were Resolved Before Opening of the IPO

Valuation: A number of the investors lack valuation comfort and which inhibited their excitement for the IPO.

OFS Structure: Since the IPO was only OFS there is no pre issue funding added so the outlook wasn’t great in terms of future growth.

Market Sentiment: The latest flotation of the IPO was hardly a success and because of that investors steered clear from investment resulting in a poor subscription.

Predictions to Fill the Gap in the Month of December:

December is the month which is expecting more movements in terms of IPO’s as we draw close to the end of the year. Here’s what is expected:

Avanse Financial Services IPO: Has garnered great expectations and is expected to be launched shortly.

Mamata Machinery IPO: It is a relatively small offering and aims a certain group of people.

Vishal Mega Mart IPO: The IPO is set for a launch in the 2nd or 3rd week of December.

The above mentioned IPO’s are supposed to target the mid range to higher range warehousing and in turn might reignite interest in the retail and institutional investor base.

Conclusion

Declaring the level of the Suraksha Diagnostics IPO and the gray market subscription, the opinions of the investors seem to be quite mixed. Although chances of allotment seem favorable as the demand is low, how the shares will perform on the listing day is left hanging in the air.

It would be hypertensive for the investors to keep an eye on the market activities and the expected IPOs in order to be able to take investing decisions in a proactive manner. Did you invest in Suraksha Diagnostics IPO? Kindly leave your response in the comments section!

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