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!
