The Star Imaging & Path Lab Limited SME IPO is generating significant buzz as it opens for subscription. For potential investors seeking a comprehensive, data-driven analysis to make an informed decision, this guide delivers everything you need. We cover the live Grey Market Premium (GMP), intricate financials, risk assessment, company fundamentals, and the critical “Buy or Not” recommendation, adhering strictly to Google’s EEAT (Experience, Expertise, Authoritativeness, Trustworthiness) principles.
About Star Imaging SME IPO Details
Star Imaging aims to raise ₹69.47 Crores through its Book Built IPO on the BSE SME platform. The issue combines fresh capital infusion and an offer for sale by existing shareholders.
- Issue Type: Book Built IPO
- Platform: BSE SME
- Price Band: ₹135 to ₹142 per share
- Face Value: ₹10 per share
- Lot Size: 1,000 Shares
- Minimum Investment (Retail): 1 Lot = 1,000 Shares * ₹142 = ₹142,000 (Upper Band)
- Issue Composition:
- Fresh Issue: 39.20 Lakh Shares (Aggregating ₹55.66 Crores)
- Offer for Sale (OFS): 9.72 Lakh Shares (Aggregating ₹13.80 Crores)
- Total Issue Size: 48.92 Lakh Shares (Aggregating ₹69.47 Crores)
- Market Maker Reservation: 4.80 Lakh Shares (Aggregating ₹6.82 Crores) allotted to Share India Securities Limited.
- Net Public Offer: 44.12 Lakh Shares (Aggregating ₹62.65 Crores)
- Pre-Issue Shares Outstanding: 135.00 Lakh Shares
- Post-Issue Shares Outstanding: 174.20 Lakh Shares
- Tentative Market Cap (Post-IPO): ₹174.20 Lakh Shares * ₹142 ≈ ₹247.36 Crores (Upper Band)
About Star Imaging & Path Lab Ltd.
Incorporated in 2004, Star Imaging & Path Lab Ltd. is a diagnostic service provider operating primarily in and around Delhi NCR. The company offers a comprehensive suite of radiology and pathology services, leveraging technology and experienced professionals to deliver accurate diagnostic reports.
- Core Services:
- Radiology: Digital X-ray, Mammography, CT scans, MRI, 4D & 5D Ultrasound.
- Pathology: Haematology, Microbiology, Biochemistry, Histopathology, Cytology, PCR testing.
- Diagnostics: Routine Health Checkups, Specialized Testing Packages.
- Business Models: Serves B2C (Individual Patients), B2B (Corporate Clients, Hospitals), and B2G (Government Schemes).
- Competitive Strengths:
- Technology Focus: Utilization of advanced diagnostic equipment.
- Experienced Team: Qualified radiologists, pathologists, and technicians.
- Quality Focus: Emphasis on sample integrity and accurate reporting.
- Integrated Services: One-stop shop for imaging and lab tests.
- Employee Strength: 209 full-time employees (as of September 30, 2024).
IPO GMP (Grey Market Premium) & Expected Listing Gain
- Live GMP (As of August 9, 2025): ₹5 – ₹10 (Subject to change rapidly based on market sentiment and subscription levels).
- GMP Trend: Currently indicating cautious optimism.
- Expected Listing Price (Based on Upper Band & Avg. GMP): ₹142 (Issue Price) + ₹10 (Avg. GMP) ≈ ₹152.00 per share.
- Expected Listing Gain: (₹152 – ₹142) / ₹142 ≈ 6.62%.
- Important Note: GMP is an unofficial indicator from the grey market. It reflects short-term sentiment and can be highly volatile. Actual listing gains depend on final subscription, allotment, market conditions on listing day, and company fundamentals. DO NOT base your investment decision solely on GMP.
Note: GMP fluctuates daily. Check our LIVE IPO GMP Tracker for real-time updates.
IPO Company Financial Performance
Star Imaging has shown significant improvement in profitability in recent years, though revenue growth has been more modest. Debt levels remain a factor to consider.
| Financial Year Ended | 31-Mar-25 | 31-Mar-24 | 31-Mar-23 | Change (FY25 vs FY24) |
|---|---|---|---|---|
| Total Revenue | 83.79 | 79.97 | 58.68 | +4.78% |
| Profit After Tax (PAT) | 15.96 | 12.45 | 0.58 | +28.19% |
| EBITDA | 28.60 | 22.34 | 5.81 | +28.02% |
| Total Assets | 98.16 | 81.64 | 61.23 | +20.23% |
| Net Worth | 47.15 | 31.35 | 18.93 | +50.40% |
| Reserves & Surplus | 33.65 | 29.85 | 17.43 | +12.73% |
| Total Borrowings | 32.73 | 30.64 | 26.56 | +6.82% |
Analysis: The standout feature is the remarkable growth in PAT (28%) and EBITDA (28%) in FY25, significantly outpacing revenue growth (5%). This suggests improved operational efficiency and cost management. The balance sheet has strengthened with a notable increase in Net Worth. Borrowings have increased slightly but remain manageable relative to the improved equity base.
IPO Application Details: Lot Size & How to Apply
- Lot Size: 1,000 Shares
- Minimum Application (Retail):1 Lot (1,000 Shares)
- Amount: ₹135,000 (Lower Band) to ₹142,000 (Upper Band)
- Application Multiples: In multiples of 1 Lot (1,000 Shares)
- How to Apply:
- Log in to your Demat/Trading Account (Zerodha, Upstox, Groww, ICICI Direct, HDFC Securities, etc.).
- Navigate to the IPO or ASBA section.
- Search for “Star Imaging” or the IPO code.
- Select Investor Category (Retail, HNI).
- Enter the number of lots and bid price (Within ₹135-₹142).
- Confirm UPI Mandate (Retail) or provide payment details (HNI).
- Submit the application before the deadline (5:00 PM on August 12, 2025).
- Retail Discount: Not Applicable for this IPO.
IPO Reservation Quota (Category-wise Allocation)
The total offer of 48.92 Lakh shares is allocated as follows:
| Investor Category | Shares Offered | % of Total Offer |
|---|---|---|
| Qualified Institutional Buyers (QIB) | 21,75,000 | 44.46% |
| Anchor Investors | *13,04,000* | 26.66% |
| QIB (Ex-Anchor) | *8,71,000* | 17.80% |
| Non-Institutional Investors (NII/HNI) | 6,57,000 | 13.43% |
| Retail Individual Investors (RII) | 15,28,000 | 31.23% |
| Employee Reservation | 52,000 | 1.06% |
| Market Maker | 4,80,000 | 9.81% |
| Total | 48,92,000 | 100.00% |
IPO Promoter Holding Details
- Promoters: Mr. Pawan Gupta and Ms. Chhaya Gupta.
- Pre-IPO Holding: 100% (135.00 Lakh Shares)
- Post-IPO Holding: 71.92% (125.20 Lakh Shares – Calculated as Pre-Issue 135.00 Lakh Shares minus OFS 9.72 Lakh Shares = 125.28 Lakh Shares; slight rounding difference may exist in RHP)
- Equity Dilution: 28.08% (Due to Fresh Issue and OFS). This indicates promoters retain significant skin in the game post-listing.
IPO Objective of the Issue (Use of Proceeds)
The net proceeds from the Fresh Issue portion (₹55.66 Crores) are earmarked for:
- Meeting Working Capital Requirements: ₹25.00 Crores – To fund day-to-day operational expenses and business growth.
- Repayment/Prepayment of Borrowings: ₹12.00 Crores – To reduce debt burden and associated interest costs, improving financial health.
- Funding Capital Expenditure: ₹5.14 Crores – Towards purchase of refurbished medical equipment for existing facilities, enhancing capacity and service quality.
- General Corporate Purposes: Balance Amount – For unforeseen business opportunities and operational needs.
IPO Timeline (Tentative Schedule – August 2025)
| Event | Date | Day |
|---|---|---|
| IPO Open Date | Aug 8, 2025 | Friday |
| IPO Close Date | Aug 12, 2025 | Tuesday |
| Finalization of Basis of Allotment | Aug 13, 2025 | Wednesday |
| Initiation of Refunds | Aug 14, 2025 | Thursday |
| Credit of Shares to Demat | Aug 14, 2025 | Thursday |
| Tentative Listing Date | Aug 18, 2025 | Monday |
| Cut-off for UPI Mandate Confirmation | 5:00 PM, Aug 12, 2025 | Tuesday |
Retail, HNI, and QIB Investment Limits
- Retail Individual Investor (RII):
- Min Investment: ₹135,000 (1 Lot @ Lower Band) – ₹142,000 (1 Lot @ Upper Band)
- Max Investment: ₹200,000 (As per SEBI definition for RII quota). For Star Imaging, the maximum RII application is capped at 2 Lots (2,000 Shares) amounting to ₹284,000 (Upper Band). *This is unusual (typically max is 14-15 lots for RII) and a critical point for retail investors.*
- Non-Institutional Investor (NII/HNI):
- Small HNI (sHNI): Applications > ₹200,000 and ≤ ₹1,000,000. Min: 3 Lots (3,000 Shares – ₹426,000 Upper Band), Max: 7 Lots (7,000 Shares – ₹994,000 Upper Band).
- Big HNI (bHNI): Applications > ₹1,000,000. Min: 8 Lots (8,000 Shares – ₹1,136,000 Upper Band), No explicit upper limit within the issue size.
- Qualified Institutional Buyer (QIB): No upper limit, subject to the allocated quota (17.80% ex-Anchor).
IPO Anchor Investor Details
Star Imaging successfully raised ₹18.52 Crores from Anchor Investors on August 7, 2025.
- Anchor Portion Size: 13,04,000 Shares (₹18.52 Crores @ ₹142/sh – Upper Band)
- Lock-in Period:
- 50% of Shares: 30 Days from allotment (Lock-in ends approx. Sep 12, 2025)
- Remaining 50%: 90 Days from allotment (Lock-in ends approx. Nov 11, 2025)
- Anchor Investor List (Representative): Typically includes Mutual Funds (like SBI MF, ICICI Prudential MF, HDFC MF), Foreign Portfolio Investors (FPIs), Banks, and Insurance Companies. The specific names are detailed in the Anchor Investor Annexure filed with BSE. Check BSE website/KFin Tech portal for the final list.
IPO Key Performance Indicators (KPIs)
Based on FY25 (March 31, 2025) financials and post-IPO capital structure:
| KPI | Value | Interpretation |
|---|---|---|
| Return on Equity (ROE) | 40.65% | Very High – Indicates exceptional efficiency in generating profit from shareholder funds. A major positive. |
| Return on Capital Employed (ROCE) | 29.92% | High – Shows efficient use of both equity and debt capital. Strong operational performance. |
| Debt to Equity Ratio (D/E) | 0.69 | Moderate – Indicates leverage, but manageable post the planned ₹12 Cr debt repayment from IPO proceeds. |
| Return on Net Worth (RoNW) | 40.65% | Synonymous with ROE. Very Strong. |
| PAT Margin | 19.10% | Healthy – Nearly 1/5th of revenue converts to bottom-line profit. Improved significantly YoY. |
| EBITDA Margin | 34.22% | Strong – Reflects good operational profitability before interest, tax, and non-cash items. |
| Price to Book Value (P/BV) | 4.07x | Based on Post-IPO BVPS (₹47.15 Cr NW / 174.20 Lakh Sh ≈ ₹27.06/sh). Priced at a premium to book value, justified by high ROE. |
| Earnings Per Share (EPS) – Pre-IPO | ₹11.82 | Based on FY25 PAT (₹15.96 Cr) / Pre-Issue Shares (135 Lakh) |
| Earnings Per Share (EPS) – Post-IPO | ₹9.16 | Based on FY25 PAT (₹15.96 Cr) / Post-Issue Shares (174.20 Lakh) |
| Price to Earnings (P/E) – Post-IPO | 15.50x | Based on Post-IPO EPS (₹9.16) and Issue Price (₹142). Compares reasonably to industry peers like Dr. Lal PathLabs (~60x), Metropolis (~50x), albeit on a smaller scale. |
IPO Risk Factors
Investors must carefully consider these risks:
- Business & Operational Risks:
- Intense Competition: Highly fragmented diagnostic sector with large national chains (Metropolis, Dr. Lal, Thyrocare) and local players. Pricing pressure is significant.
- Regional Concentration: Heavy reliance on Delhi NCR market makes growth and profitability vulnerable to local economic conditions and competition.
- Regulatory Dependence: Reimbursement rates under government schemes (B2G) can be revised downwards, impacting margins. Delays in payments are common.
- Quality & Accuracy: Diagnostic errors can lead to reputational damage, legal liability, and loss of trust. Stringent quality control is critical and costly.
- Doctor Referral Dependence: Business relies heavily on referrals from doctors and hospitals. Loss of key relationships impacts volumes.
- Talent Retention: Attracting and retaining qualified radiologists, pathologists, and technicians is challenging and expensive.
- Industry & Regulatory Risks:
- Stringent Regulations: Highly regulated by NABL, NABH, FSSAI, state health departments, PC-PNDT Act. Compliance is mandatory, complex, and costly. Non-compliance risks penalties or shutdown.
- Technological Obsolescence: Rapid advancements in diagnostic tech require continuous capital investment to stay competitive.
- Pricing Controls: Potential for government-imposed price caps on diagnostic tests, squeezing margins.
- Financial Risks:
- Leverage: Existing debt levels (D/E 0.69 pre-repayment) create interest burden and repayment obligations. Post-IPO repayment will improve this.
- Working Capital Intensity: Requires significant ongoing investment in inventory (reagents) and faces receivables delays, especially from corporates and government.
- Profitability Sustainability: The sharp jump in FY24/FY25 PAT margins needs scrutiny. Can this level be sustained against competition and potential cost inflation?
- Integration Risk (Future): If growth involves acquisitions, integration challenges could arise.
IPO Company Contact Details
- Registered Office:
Star Imaging & Path Lab Ltd.
4B/4, Tilak Nagar,
Near Sant Pura, Tilak Nagar,
West Delhi, New Delhi – 110018 - Phone: +91 9990019189
- Email: cs@starimaging.in
- Website: https://www.starimaging.in/
IPO Registrar Details
KFin Technologies Limited handles allotment, refunds, and investor communications.
- Website: https://kosmic.kfintech.com/ipostatus/
- IPO Helpline Email: sipll.ipo@kfintech.com
- Phone: 040-67162222, 040-79611000
- Address: KFin Technologies Limited, Selenium Tower B, Plot 31-32, Gachibowli, Financial District, Nanakramguda, Hyderabad – 500 032, Telangana, India.
IPO Recommendation: Buy Or Not? (Critical Analysis)
Analysis Summary:
- Strengths:
- Exceptional Profitability Metrics: ROE (40.65%) and ROCE (29.92%) are outstanding and key positives.
- Strong Margin Expansion: Significant improvement in PAT and EBITDA margins in FY24/FY25.
- Debt Reduction Plan: Using ₹12 Cr for repayment will strengthen the balance sheet and reduce interest costs.
- Promoter Skin in the Game: High post-IPO holding (71.92%) aligns promoter interests with shareholders.
- Reasonable Post-IPO P/E: ~15.5x is significantly lower than large listed peers, offering relative valuation comfort.
- Anchor Participation: Signals institutional confidence.
- Weaknesses/Risks:
- Regional Concentration: High dependence on Delhi NCR is a vulnerability.
- Fierce Competition: Sustaining high margins in a crowded market is a major challenge.
- Regulatory Overhang: Constant compliance burden and reimbursement risks (esp. B2G).
- Limited Retail Quota & High Min. Lot: Unusual 2-lot max for RII and high min investment (₹142k) may limit retail participation depth.
- Sustainability Question: Needs close monitoring if FY25’s stellar profitability can be maintained.
Recommendation:
- “SUBSCRIBE” with Cautious Optimism for Listing Gains & Medium Term. The combination of stellar profitability, reasonable valuation (post-IPO P/E 15.5x), and a clear plan for debt reduction makes the IPO fundamentally attractive at the price band, especially compared to expensive larger peers. The high ROE/ROCE is a major positive signal.
- However, exercise caution:
- The regional concentration and intense competition are significant headwinds.
- Vigilance is needed on whether the remarkable FY25 margin surge is sustainable.
- The high minimum investment (1 Lot ~₹142k) is a barrier for small retail investors.
- Suitable For: Investors with a medium-term horizon (1-3 years), a moderate risk appetite, and an understanding of the competitive diagnostic sector. Those seeking quick, high listing gains should note the modest GMP (11-12%) and inherent market volatility.
- Not Suitable For: Risk-averse investors or those expecting guaranteed high short-term returns. Avoid if uncomfortable with the concentration and competition risks.
IPO Allotment and Refunds
- Allotment Process: Based on a proportionate basis within each investor category (RII, NII, QIB) after valid bids are verified. Oversubscribed categories may lead to lottery systems (especially Retail).
- Refund Timelines: Initiated on August 14, 2025.
- Payment Methods for Refunds:
- Retail (ASBA/UPI): Funds blocked via UPI mandate will be released if not allotted. If allotted, the blocked amount is debited.
- HNI (Non-ASBA): Refunds processed electronically to the bank account linked to the application.
- Actions After Allotment:
- Hold: If you believe in the company’s long-term growth story and fundamentals (high ROE/ROCE, post-debt repayment strength), holding for medium-term potential could be rewarding, provided the margins hold.
- Sell on Listing: If listing gains meet your target (e.g., 10-15%+) and you are risk-averse or uncertain about long-term sustainability in the competitive landscape, selling on listing day is a valid strategy to lock in profits. Monitor GMP and subscription levels closer to listing.
IPO RHP/DRHP
- Red Herring Prospectus (RHP): This is the final offer document filed with ROC and SEBI (BSE SME in this case). It contains all details except the final issue price and allotment specifics. Crucial Reading.
- Draft Red Herring Prospectus (DRHP): The initial document filed with BSE SME to seek approval for the IPO. It may contain slightly older data.
- Where to Find: Access the latest Star Imaging IPO RHP on the BSE SME website (https://www.bseindia.com/sme) under the company’s IPO section or the KFin Technologies portal.
- Download Star Imaging IPO DRHP: Click Here
- Download RHP: click Here
IPO Review: Pros and Cons
| Pros | Cons |
|---|---|
| Exceptional ROE (40.65%) & ROCE (29.92%) | Heavy Regional Concentration (Delhi NCR) |
| Strong PAT Growth (28% YoY in FY25) | Fiercely Competitive & Fragmented Market |
| Healthy PAT Margin (19.1%) & EBITDA Margin (34.2%) | Significant Regulatory Scrutiny & Compliance Burden |
| Reasonable Post-IPO P/E (15.5x) | Sustainability of High Margins Uncertain |
| Clear Use of Proceeds (Debt Repayment, Capex, WC) | Working Capital Intensive Business Model |
| Promoters Retain Significant Stake (71.92%) | Limited Retail Quota & High Min. Investment (₹142k) |
| Anchor Investor Participation | Dependence on Doctor/Hospital Referrals |
FAQs: Star Imaging SME IPO 2025
- What is the Star Imaging IPO?
It’s an initial public offering by Star Imaging & Path Lab Ltd., a Delhi NCR-based diagnostic service provider, to raise ₹69.47 Crores on the BSE SME platform (Aug 8-12, 2025). It combines a fresh issue and an offer for sale. - What is the Star Imaging IPO GMP today?
As of August 9, 2025, the live Grey Market Premium (GMP) is approximately ₹15 – ₹18. This indicates a potential listing price around ₹157-₹160 per share (11-12% gain over upper band). Note: GMP is highly volatile. - What is the lot size and minimum investment?
The lot size is 1,000 shares. The minimum investment for Retail investors is ₹142,000 (1 lot at the upper band price of ₹142). Crucially, the maximum Retail application allowed is only 2 lots (₹284,000). - When is the Star Imaging IPO allotment date?
The tentative finalization of the basis of allotment is scheduled for Wednesday, August 13, 2025. - When is the Star Imaging IPO listing date?
Shares are tentatively scheduled to list on the BSE SME platform on Monday, August 18, 2025. - How can I apply for the Star Imaging IPO?
Apply online via your stockbroker’s trading platform (Zerodha, Upstox, Groww, etc.) or net banking portal (using ASBA). Select the IPO, enter your details, bid within ₹135-₹142, confirm the UPI mandate (Retail), and submit before 5 PM on Aug 12, 2025. - What are the financials of Star Imaging?
The company showed strong growth in FY25: Revenue ₹83.79 Cr (+5% YoY), PAT ₹15.96 Cr (+28% YoY). Key strengths are high ROE (40.65%) and ROCE (29.92%). See the detailed financial table above. - What are the risks of investing?
Major risks include intense competition, regional concentration in Delhi NCR, regulatory hurdles, sustainability of high margins, working capital intensity, and dependence on referrals. Review the “Risk Factors” section. - Is Star Imaging IPO good for listing gain?
Current GMP suggests a potential ~11-12% listing gain. While possible, it’s not guaranteed and depends on final subscription and market sentiment. The fundamentals support a reasonable valuation, but gains could be modest. - Should I subscribe for the long term?
The “Subscribe” recommendation comes with cautious optimism for the medium term. High profitability metrics (ROE/ROCE), debt reduction plans, and reasonable valuation are positives. However, long-term success hinges on overcoming competition and regional limitations. Only invest if you understand the risks and have a medium-term horizon.
