Star Imaging and Path Lab IPO: Strong Subscription, Muted Listing

by Priya Bhatiya

Posted on August 18, 2025

Star Imaging and Path Lab shares made a flat debut on the BSE SME platform on August 18, 2025, listing at ₹142 per share, which is exactly the same as the IPO issue price. This means that investors who were allotted shares in the IPO neither gained nor lost on listing day. The company’s grey market premium had suggested only a modest performance, and the flat listing confirmed those muted expectations.

The IPO itself was oversubscribed 5.67 times, with Qualified Institutional Buyers (QIBs) driving most of the demand. The price band for the IPO was ₹135-₹142 per share, and the minimum lot size was 1,000 or 2,000 shares for retail investors, depending on the source. The company raised ₹69.47 crore through the offering.

In summary, Star Imaging’s listing on the BSE SME was uneventful, opening at its issue price of ₹142 per share and offering no immediate gains for IPO investors.

Here are detailed insights into Star Imaging and Path Lab’s financials, IPO subscription breakdown, and business activities:

Financial Highlights (FY2024-25)

• Revenue: ₹83.79 crore (5% YoY growth)
• Net Profit (PAT): ₹15.96 crore (28% YoY growth)
• EBITDA Margin: 34.22%
• PAT Margin: 19.10%
• Return on Equity (ROE): 41% for FY25
• Market Cap (post-listing): Approx. ₹247 crore
• Cons: High debtor days (222), increased working capital, indicating some delayed collections.

IPO Subscription Breakdown

• Overall IPO Subscription: 5.67 times
  • Qualified Institutional Buyers (QIBs): 12.85x
  • Non-Institutional Investors (NIIs): 4.38x
  • Retail Investors: 2.32x
• IPO Size: ₹69.47 crore (including ₹55.66 crore fresh issue and ₹13.80 crore offer for sale)
• Price Band: ₹135 – ₹142 per share
• IPO Dates: August 8 to August 12, 2025.

Business Activities

• Industry: Diagnostic and Imaging Services
• Services: Full suite including X-rays, CT scans, MRIs, ultrasounds, and pathology tests
• Network Regions: Operations in Delhi (B2C, B2B, B2G), Uttar Pradesh (B2G), and Nashik (B2G)
• Accreditation: NABL accredited labs
• History: Business roots go back to 1978 (Janta X-Ray Clinic); Star Imaging was incorporated in 2004, later acquiring several related businesses in 2011.
• Expansion Plans: The IPO proceeds will be used for:
  • Working capital requirements (₹25 crore, 44.91%)
  • Debt repayment/prepayment (₹12 crore, 21.55%)
  • Purchasing medical equipment (₹5.14 crore, 9.23%)
  • General corporate purposes (₹13.53 crore, 24.3%)
• Competitive Advantages: Integrated diagnostics, diversified B2C/B2B/B2G revenue, robust network, technological investment, and strong management experience.

Star Imaging emphasizes service expansion, technology adoption, and PPP (Public-Private Partnership) engagements to reach tier II and III regions and leverage government healthcare initiatives.

Ref: Flat Debut! Star Imaging shares list at ₹142 on BSE SME, same as issue price