Star Imaging and Path Lab, a leading diagnostic healthcare service provider, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch its IPO. Star Imaging IPO will consist of a fresh issue of up to 39.20 lakh equity shares and an Offer for Sale (OFS) of up to 9.72 lakh equity shares by promoter Mr. Pawan Gupta. The total issue size is up to 48.92 lakh equity shares of face value INR 10 per share.
Star Imaging IPO Structure and Objectives
The fresh issue aims to raise funds primarily to meet the company’s working capital requirements, repay certain outstanding borrowings, and support capital expenditure for purchasing refurbished medical equipment. The equity shares will be listed on the BSE SME platform. The issue is managed by Share India Capital Services Private Limited and KFin Technologies Limited is the registrar to the issue. The DRHP specifies the following proposed allocation of net proceeds:
- INR 25 crore for working capital
- INR 12.99 crore for repayment/prepayment of borrowings
- INR 5.14 crore for the purchase of refurbished medical equipment
Promoter Offer for Sale
Promoter Mr. Pawan Gupta is offering 9.72 lakh shares as part of the OFS component.
Business Overview
Founded in September 2024, Star Imaging is headquartered in Delhi and has a diagnostic network offering pathology, radiology, cardiology, and neurology services in Delhi, UP, and Nashik. The company’s roots go back to 1978 when it started as Janta X-Ray Clinic. Over the years, it has expanded its services and adopted advanced diagnostic technologies. Star Imaging now offers a wide range of services including digital X-rays, CT scans, MRIs, 4D/5D ultrasounds, BMD, ECG, stress TMT, EEG, and pathology tests like biochemistry, hematology and microbiology.
It caters to customers through B2C, B2B and B2G models and is actively involved in Public-Private Partnerships (PPP) with state governments. These partnerships include setting up and operation of radiology units and CT/MRI scan facilities in government hospitals. As of 30 September 2024, the company had 209 full time employees including executive directors.
Financial Performance
Star Imaging has shown strong financial performance in recent years:
- Revenue from operations for FY24 was INR 78.50 crore, up 34.49% from FY23
- EBITDA was INR 22.34 crore in FY24 from INR 5.81 crore in FY23
- PAT was INR 12.34 crore in FY24 from INR 0.57 crore in FY23
- Return on Capital Employed (ROCE) improved to 29.54% in FY24
- Operating cash flow also turned positive at INR 18.25 crore in FY24
- EBITDA Margin improved to 28.46% in FY24
Conclusion
With decades of experience, robust financials, and presence in both private and government healthcare segments, Star Imaging and Path Lab’s IPO is a big step toward its growth journey. The listing on BSE SME will allow investors to participate in the growing diagnostics space in India with a company that has legacy of trust and innovation.
According to IPO Central’s data, 39 SME IPOs were listed from 1 January to 28 February 2025. Out of these 39, 13 SME IPOs landed in negative territory. The average listing returns stand at 18.60%. These SME IPOs cumulatively raised INR 1,827.94 crore from the market.
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