Star Imaging IPO Listing: Flat Debut at Issue Price

Star Imaging & Path Lab Limited, the healthcare diagnostic services provider, made a muted debut on BSE SME on August 18, 2025. After closing its IPO bidding between August 8-12, 2025, the company commenced trading at ₹142, matching its issue price and reflecting measured investor sentiment towards the diagnostic services sector.

Star Imaging Listing Details

Star Imaging & Path Lab Limited launched its IPO at ₹142 per share with a minimum investment of 2,000 shares costing ₹2,84,000. The IPO received a moderate response with a subscription of 5.67 times - QIB leading at 12.85 times, NII at 4.38 times, and individual investors at 2.32 times, indicating solid institutional interest despite cautious retail participation in the healthcare diagnostics busines

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First-Day Trading Performance Outlook

Listing Price: The Star Imaging share price opened at ₹142 on BSE SME, matching the issue price exactly with no premium or discount, delivering neutral returns for investors and meeting conservative market expectations for the diagnostic services debut.

Growth Drivers and Challenges

Growth Drivers:

Steady Financial Performance: Revenue increased by 5% to ₹83.79 crore in FY25 with PAT rising by 28% to ₹15.96 crore, reflecting consistent demand for diagnostic services and operational efficiency improvements.

Comprehensive Service Portfolio: Wide range of diagnostic services including radiology, pathology, and specialised testing with advanced technology and experienced medical professionals, ensuring accurate and timely reports.

Strategic Market Presence: Strong presence in multiple regions around Delhi with services to both individuals and healthcare institutions, providing diversified revenue streams and market penetration.

Advanced Technology Infrastructure: Modern equipment for digital X-ray, CT scans, MRI, and specialised laboratory testing capabilities, positioning the company competitively in the healthcare diagnostics market.
 

Challenges:

Moderate Revenue Growth: Revenue growth of only 5% in FY25 indicates limited market expansion and competitive pressures in the fragmented diagnostic services industry.

High Debt Burden: Debt-to-equity ratio of 0.69 with total borrowings of ₹32.73 crore, creating financial leverage concerns and affecting cash flow generation capabilities.

Competitive Market Environment: Operating in a highly competitive and fragmented diagnostic services segment with pricing pressures and margin compression challenges affecting profitability and sustainability.

Geographic Concentration: Primary operations concentrated in the Delhi region, exposing the company to local market risks and limiting geographic diversification benefits.
 

Utilisation of IPO Proceeds

Working Capital Requirements: ₹25 crore for meeting working capital requirements supporting inventory management and business operations in the healthcare diagnostics sector.

Debt Reduction: ₹12 crore for repayment or prepayment of certain borrowings, improving the capital structure and reducing financial leverage burden.

Equipment Purchase: ₹5.14 crore for capital expenditure towards the purchase of refurbished medical equipment in running facilities, enhancing diagnostic capabilities and operational efficiency.

 Financial Performance of Star Imaging

Revenue: ₹83.79 crore for FY25, showing modest growth of 5% from ₹79.97 crore in FY24, reflecting steady demand for diagnostic services despite competitive market conditions. Net 

Profit: ₹15.96 crore in FY25, representing growth of 28% from ₹12.45 crore in FY24, indicating improved operational efficiency and margin management. 

Financial Metrics: Strong ROE of 40.65%, impressive ROCE of 29.92%, debt-to-equity ratio of 0.69, solid RoNW of 40.65%, healthy PAT margin of 19.10%, robust EBITDA margin of 34.22%, Price to Book Value of 4.07, and market capitalisation of ₹247.36 crore.