Star Imaging IPO: A Detailed Look into the Diagnostic Healthcare Offering
The Indian healthcare sector continues its robust growth trajectory, driven by increasing health awareness and demand for quality diagnostic services. Against this backdrop, Star Imaging & Path Lab Ltd. is poised to enter the public market with its Initial Public Offering (IPO). This comprehensive guide delves into the specifics of this upcoming offering, providing potential investors with a clear picture of the company, its financials, and the key details of the IPO.
Spotlight on Star Imaging & Path Lab Ltd.
Established in 2004, Star Imaging & Path Lab Ltd. has built a reputation as a comprehensive diagnostic service provider. The company's core mission revolves around delivering accurate and timely medical test reports to support effective diagnosis and treatment. With a strong network and a focus on advanced technology, they serve both individual patients and healthcare institutions across various regions.
Services Portfolio:
- Radiology: Offering a range of imaging services including Digital X-rays, Mammography, advanced CT scans, and 4D & 5D ultrasound services.
- Pathology: Specializing in crucial laboratory tests such as Haematology, Microbiology, PCR (polymerase chain reaction), and Histopathology.
- General Diagnostics: Providing a spectrum of routine and specialized testing services.
Distinguishing Strengths:
The company prides itself on several key competitive advantages:
- Precision Diagnostics: A commitment to delivering highly accurate test results.
- Specialized Expertise: A team of experienced medical professionals ensuring quality service.
- Rigorous Procedures: Adherence to proper sample collection and processing protocols for reliable outcomes.
As of late 2024, Star Imaging & Path Lab Ltd. employs over 200 full-time professionals, including their executive directors, underscoring their operational capacity.
Decoding the IPO: Essential Offering Details
The Star Imaging IPO is structured as a book-building issue, aiming to raise a significant sum to fuel its expansion and operational needs. Here’s a breakdown of the key elements:
Issue Overview:
| Detail | Description |
|---|---|
| IPO Dates | August 8, 2025 to August 12, 2025 |
| Face Value | ₹10 per share |
| Price Range | ₹135 to ₹142 per share |
| Minimum Lot Size | 1,000 shares |
| Issue Type | Book-building IPO |
| Listing Platform | BSE SME Exchange |
Overall Issue Size:
The total offering comprises 48,92,000 shares, aggregating up to ₹69.47 Crores. This includes a mix of:
- Fresh Issuance: 39.20 lakh shares (approx. ₹55.66 Crores) to raise new capital for the company.
- Offer for Sale (OFS): 9.72 lakh shares (approx. ₹13.80 Crores) by existing shareholders.
A portion of the shares (4,80,000 shares, worth ₹6.82 Cr) is reserved for the market maker, Share India Securities Limited.
IPO Timeline: A Key Dates Guide
Understanding the IPO schedule is crucial for potential investors to plan their applications and track progress.
Key Intermediaries:
- Book-Running Lead Manager: Share India Capital Services Private Limited
- Registrar to the Issue: Kfin Technologies Limited
- Market Maker: Share India Securities Limited
Financial Performance Review & Valuation Insights
A look at Star Imaging & Path Lab Ltd.'s recent financial results provides a crucial perspective on its operational health and growth trajectory.
Growth Trends (Consolidated Figures):
The company has demonstrated consistent growth, with revenue increasing by 5% and profit after tax (PAT) seeing a significant 28% rise between the fiscal years ending March 31, 2024, and March 31, 2025.
| Financials (₹ Crore) | Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 |
|---|---|---|---|
| Assets | 98.16 | 81.64 | 61.23 |
| Total Income | 83.79 | 79.97 | 58.68 |
| Profit After Tax (PAT) | 15.96 | 12.45 | 0.58 |
| EBITDA | 28.60 | 22.34 | 5.81 |
| Net Worth | 47.15 | 31.35 | 18.93 |
| Reserves and Surplus | 33.65 | 29.85 | 17.43 |
| Total Borrowing | 32.73 | 30.64 | 26.56 |
Core Performance Metrics (as of March 31, 2025):
These ratios offer deeper insights into the company's efficiency, profitability, and financial leverage:
| Metric | Value |
|---|---|
| Return on Equity (ROE) | 40.65% |
| Return on Capital Employed (ROCE) | 29.92% |
| Debt/Equity Ratio | 0.69 |
| Return on Net Worth (RoNW) | 40.65% |
| PAT Margin | 19.10% |
| EBITDA Margin | 34.22% |
| Price to Book Value | 4.07 |
The market capitalization of Star Imaging IPO at the upper price band stands at approximately ₹247.36 Crores.
Earnings and Valuation Multiples:
Analyzing the Earnings Per Share (EPS) and Price-to-Earnings (P/E) ratio provides a quick glance at the company's valuation in relation to its earnings.
| Metric | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (₹) | 11.82 | 9.16 |
| P/E (x) | 12.01 | 15.5 |
Note: Pre-IPO EPS is based on pre-issue shareholding and latest FY earnings (March 31, 2025). Post-IPO EPS is calculated based on post-issue shareholding and annualized FY earnings (March 31, 2025).
Investor Categories & Application Details
The IPO has specific allocations for different investor segments, along with minimum and maximum application sizes for retail and High Net Worth Individuals (HNIs).
Reservation Structure:
| Investor Category | Allocation (Net Offer) |
|---|---|
| Qualified Institutional Buyers (QIB) | Not more than 50% |
| Retail Individual Investors (RII) | Not less than 35% |
| Non-Institutional Investors (NII) | Not less than 15% |
Minimum & Maximum Investment per Application:
The lot size for an application is 1,000 shares. Here's how investment amounts vary by investor type:
| Investor Type | Lots (Min) | Shares (Min) | Amount (Min) |
|---|---|---|---|
| Retail Individual Investors (RII) | 2 | 2,000 | ₹2,84,000 |
| Small HNI (S-HNI) | 3 | 3,000 | ₹4,26,000 |
| Big HNI (B-HNI) | 8 | 8,000 | ₹11,36,000 |
The maximum investment for a Retail investor is 2,000 shares (₹2,84,000). For S-HNI, the maximum is 7,000 shares (₹9,94,000).
Strategic Use of Capital: IPO Objectives
The funds raised through this IPO are earmarked for several key initiatives, aiming to bolster the company's operations and future growth.
The net proceeds from the issue will be primarily utilized for:
- Meeting Working Capital Needs: Approximately ₹25.00 Crores will be allocated to support day-to-day operational requirements.
- Debt Reduction: Around ₹12.00 Crores is planned for the repayment or prepayment of existing company borrowings, strengthening the balance sheet.
- Capital Expenditure: An investment of ₹5.14 Crores is dedicated to purchasing refurbished medical equipment for existing facilities, enhancing service capabilities.
- General Corporate Purposes: Remaining funds will be used for various strategic initiatives, including business development, technology upgrades, and other general corporate needs.
Founders' Stake and Dilution
The promoters of Star Imaging & Path Lab Ltd. are Mr. Pawan Gupta and Ms. Chhaya Gupta. Their stake in the company will see a change post-IPO due to the fresh issue of shares.
| Holding Stage | Percentage |
|---|---|
| Pre-Issue Shareholding | 100% |
| Post-Issue Shareholding | 71.92% |
This indicates an equity dilution of approximately 28.08% post-IPO.
Strategic Outlook: A SWOT Analysis
Understanding the internal strengths and weaknesses, alongside external opportunities and threats, provides a holistic view of Star Imaging & Path Lab Ltd.'s market position.
Strengths:
- Established Market Presence: Over two decades of experience in the diagnostic sector, building trust and a client base.
- Comprehensive Service Offering: A wide range of radiology and pathology tests under one roof attracts diverse patient needs.
- Advanced Technological Infrastructure: Utilization of modern equipment for accurate and efficient diagnostic services.
- Skilled Professional Team: Experienced medical personnel contribute to service quality and reliability.
Weaknesses:
- Capital Intensive Business: High costs associated with acquiring and maintaining advanced diagnostic equipment.
- Competition from Larger Chains: Facing intense competition from well-established national and regional diagnostic chains with deeper pockets and wider reach.
- Dependency on Referrals: Significant portion of business may rely on doctor referrals, making client acquisition strategies crucial.
- Regulatory Compliance: Adherence to evolving healthcare regulations can pose operational challenges and costs.
Opportunities:
- Growing Healthcare Expenditure: Increasing public and private spending on healthcare in India, especially diagnostics.
- Rising Health Awareness: Greater emphasis on preventive healthcare and early diagnosis drives demand for diagnostic tests.
- Technological Advancements: Scope for adopting AI, machine learning, and automation for improved efficiency and new service offerings.
- Expansion Potential: Opportunities to expand geographical reach or specialize in niche diagnostic areas.
Threats:
- Intense Competition and Price Pressure: High competition could lead to pricing wars, impacting profit margins.
- Economic Slowdown: Economic downturns might reduce discretionary healthcare spending by individuals.
- Technological Obsolescence: Rapid advancements in medical technology necessitate continuous investment to stay competitive.
- Data Security and Privacy Concerns: Handling sensitive patient data requires robust cybersecurity measures and compliance with data protection laws.
Connecting with Star Imaging & Path Lab Ltd.
Company Contact Information:
- Address: 4B/4, Tilak Nagar, Near Sant Pura, Tilak Nagar West Delhi, New Delhi, New Delhi, 110018
- Phone: +91 9990019189
- Email: cs@starimaging.in
- Website: https://www.starimaging.in/
IPO Registrar Details:
For any queries related to share allotment or other IPO-related processes, Kfin Technologies Limited is the official registrar.
- Phone: 04067162222, 04079611000
- Email: sipll.ipo@kfintech.com
- Website: https://kosmic.kfintech.com/ipostatus/
Participating in the IPO: A General Guide
Investors keen on applying for the Star Imaging IPO can typically do so online through their brokerage accounts. The most common methods are:
- UPI (Unified Payments Interface): Many brokers offer IPO applications via UPI, where you link your bank account for payment.
- ASBA (Application Supported by Blocked Amount): This method is available through your bank's net banking portal, where the application amount is blocked in your account but not debited until allotment.
The general steps involve logging into your trading account's IPO section, selecting the Star Imaging IPO, entering your bid details (quantity and price), and approving the payment mandate.
Final Takeaways: Considerations for Potential Investors
The Star Imaging & Path Lab Ltd. IPO presents an opportunity to invest in a growing diagnostic healthcare company. The company's consistent financial performance, strategic utilization of IPO proceeds for expansion and debt reduction, and its position in a high-demand sector are noteworthy.
However, like all investments, it comes with inherent risks. Prospective investors should carefully evaluate the company's financials, understand the competitive landscape of the diagnostic industry, and consider the broader market conditions. It is always advisable to conduct thorough due diligence and consult with a financial advisor to align the investment with individual risk tolerance and financial goals before making any investment decisions.