The Molbio Diagnostics IPO has entered its second day of bidding on a strong note, with investors showing keen interest and the grey market sending a positive signal. The point-of-care molecular diagnostics company currently commands a 17% grey market premium (GMP), up from 15% earlier, pointing to expectations of a strong debut on the stock exchanges.
The IPO was subscribed 83% on the first day, with investors bidding for a substantial portion of the 81.58 lakh shares on offer. Retail investors subscribed to 77% of the 40.69 lakh shares reserved for them, indicating steady participation from individual investors.
The public issue comprises a fresh issue of shares worth Rs 200 crore and an offer for sale (OFS) of Rs 739.70 crore, with proceeds from the latter going to the selling shareholders.
The IPO is priced at Rs 768-807 per share and will remain open until August 12, 2026. At the upper end of the price band, it is expected to raise approximately Rs 939.70 crore.
Market analysts have recommended subscribing to the issue, citing valuations broadly in line with industry benchmarks. The company is also being offered at a discount to the average price-to-earnings (P/E) multiple of 64.9 times for its listed peers.
Several existing shareholders will participate in the OFS. Promoter entity Exxora Trading LLP will sell 18.11 lakh shares, valued at around Rs 146.15 crore at the upper price band. Corporate shareholder India Business Excellence Fund III will offer 10 lakh shares worth approximately Rs 80.70 crore, while promoter shareholder Chandrasekhar Bhaskaran Nair will sell 12.21 lakh shares valued at around Rs 98.53 crore.
Ahead of the IPO, Molbio Diagnostics raised Rs 281.5 crore from anchor investors. The company, backed by Temasek and Motilal Oswal Private Equity, allotted 34.87 lakh equity shares to 33 anchor investors at Rs 807 apiece, the upper end of the price band.
The basis of allotment is expected to be finalised on August 13, with the shares likely to list on the NSE and BSE on August 17.
The IPO has a lot size of 18 shares, meaning retail investors will need to invest a minimum of Rs 14,526 at the upper price of Rs 807 per share.
Kotak Mahindra Capital Company is the book-running lead manager for the issue, while KFin Technologies Ltd. is the registrar.
Molbio Diagnostics IPO Subscription Status
On Day 1, the Molbio Diagnostics IPO was subscribed 83% overall, with investors bidding for 67.5 lakh shares against the 81.58 lakh shares on offer.
Retail Individual Investors (RIIs) subscribed to 77% of their reserved portion of 40.69 lakh shares, while the Non-Institutional Investors (NIIs) category was subscribed 73% against its quota of 17.43 lakh shares.
Qualified Institutional Buyers (QIBs) fully subscribed to their quota, with the category receiving 100% subscription against the 23.25 lakh shares on offer.
Molbio Diagnostics IPO GMP today
The grey market is signalling strong investor interest in the Molbio Diagnostics IPO. The latest grey market premium (GMP) stands at around Rs 122 per share, implying a premium of nearly 15% over the IPO's upper price band of Rs 807 per share.
At the current GMP, the estimated listing price is around Rs 929 per share.
However, investors should note that the GMP is an unofficial indicator and can fluctuate significantly ahead of listing. It should be viewed as a measure of market sentiment rather than a guarantee of listing gains.
Also Read: IPO Rush: 34 companies race to launch issues worth Rs 45,000 crore by September 30
How Molbio Diagnostics plans to use IPO funds
Molbio Diagnostics plans to use the IPO proceeds to expand its infrastructure and strengthen its research and manufacturing capabilities.
Around Rs 125.12 crore will be invested in capital expenditure for developing a research and development facility, Centre of Excellence and related office infrastructure. Another Rs 80.81 crore will be used to purchase plant, machinery and other equipment for its manufacturing facilities in Goa and Visakhapatnam. The remaining funds will be used for general corporate purposes.
The total estimated utilisation of the IPO proceeds stands at Rs 205.93 crore.
About Molbio Diagnostics
Established in October 2000, Molbio Diagnostics Ltd. is a global molecular diagnostics company focused on developing, manufacturing and commercialising rapid diagnostic solutions for infectious and non-communicable diseases.
The company is best known for its proprietary Truenat platform, a portable, battery-operated PCR-based molecular diagnostic system designed to deliver accurate test results within an hour, particularly in resource-constrained healthcare settings.
The company has also expanded into radiology, digital pathology and breast health screening through subsidiaries and strategic partnerships.
Strong financial performance
Molbio Diagnostics reported healthy financial growth ahead of its public issue. In FY26, total income rose 42% year-on-year to Rs 1,455 crore from Rs 1,027 crore in FY25.
Profit after tax (PAT) increased 18% to Rs 164 crore in FY26 from Rs 138.58 crore a year earlier.
Should you subscribe?
Swastika Research has recommended subscribing to the Molbio Diagnostics IPO, citing attractive valuations and strong growth prospects. The issue is priced below the 64.9-times average P/E multiple of listed peers, making the valuation relatively reasonable, according to the research firm.
The Rs 200-crore fresh issue will fund capacity expansion at the company's Goa and Visakhapatnam facilities, with the proceeds directed towards growth-focused capital expenditure rather than debt reduction.
According to Swastika Research, Molbio's strong position in molecular diagnostics, scalable business model and favourable industry trends, along with healthy return ratios and potential margin expansion, support the long-term investment case.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
