Suraksha Clinic and Diagnostics IPO will open on November 29. The company aims to raise Rs 846.25 crore by offloading 1.92 crore shares of promoters and other selling shareholders. This means the raised funds will go to the bank accounts of promoters and selling shareholders. None of the raised money will be used for the company. Apart from this, there are a few other risks to look at before you apply for the IPO:
There have been concerns about the safety of medical professionals in West Bengal and the state has been under fire since the case of rape was reported. The company’s 95.48% of revenue from operations generated in FY24 was from West Bengal. “In the event of a regional slowdown in the economic activity in West Bengal, or any other developments including political or civil unrest, disruption, disturbance or sustained economic downturn that reduce the demand for our services in the state of West Bengal or any changes in the policies of the state or local governments, could adversely affect our business,” said the company.
The securities of certain of the company’s promoter group members had been suspended from trading on the Calcutta Stock Exchange in the past. “We cannot assure you that there will be no such instances in the future that may adversely affect our operations, reputation and ability to raise capital through further public issue of securities,” read the RHP of the company.
The credit rating company CRISIL Ratings has downgraded its credit rating in the past. “Any future downgrade of our credit rating by any credit rating agency could materially adversely affect our business and financial condition and our ability to raise capital in the future,” said the company. Surakhsa Diagnostics’ credit rating was downgraded from CRISIL BBB+/Stable (Reaffirmed) in calendar year 2022 to CRISIL BB+/Stable (Issuer not cooperating) in calendar year 2023and to CRISIL B/Stable (Issuer not cooperating)in calendar year 2024.
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The company has delayed the payment of statutory payments and employee provident fund payments in the past. “Any delay in payment of statutory dues by our company in the future may result in the imposition of penalties and in turn, may hurt the company’s business,” said Suraksha Diagnostics.
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