Molbio Diagnostics IPO was subscribed over 70 times by the end of the 3-day bidding period on Wednesday for its Rs 939 crore issue. The over-subscription was led by Qualified Institutional Buyers, who bid over 180 times their allotted portion.
The point-of-care molecular diagnostics company is also commanding a 17.10% grey market premium (GMP), up from 15% earlier, indicating expectations of a potentially strong listing.
Molbio Diagnostics IPO details
The IPO comprises a fresh issue of shares worth Rs 200 crore and an Offer for Sale (OFS) of Rs 739.70 crore. Under the OFS, existing shareholders will sell part of their holdings, with the proceeds going directly to them.
The IPO is priced in the range of Rs 768-807 per share and will remain open for subscription until August 12, 2026. At the upper end of the price band, the issue is expected to raise around Rs 939.70 crore.
The basis of allotment is expected to be finalised on August 13, 2026, following which the shares are likely to list on the NSE and BSE on August 17, 2026.
Among the shareholders participating in the OFS, promoter entity Exxora Trading LLP will sell 18.11 lakh shares worth around Rs 146.15 crore at the upper price band. Corporate shareholder India Business Excellence Fund III will offer 10 lakh shares valued at approximately Rs 80.70 crore, while promoter shareholder Chandrasekhar Bhaskaran Nair will sell 12.21 lakh shares worth around Rs 98.53 crore.
Molbio Diagnostics IPO Subscription Status
Molbio Diagnostics IPO was oversubscribed by 70.26 times on Day 3, with investors bidding for 57.32 crore shares against the 81.58 lakh shares on offer, according to NSE data.
The demand was led by Qualified Institutional Buyers (QIBs), whose portion was subscribed 186.39 times against the 23.25 lakh shares on offer.
The Non-Institutional Investors (NIIs) segment followed, with the category subscribed 49.80 times against the 17.43 lakh shares reserved for it.
Retail Individual Investors (RIIs) subscribed 12.96 times their reserved portion of 40.69 lakh shares.
Molbio Diagnostics IPO GMP Today
The grey market premium for the Molbio Diagnostics IPO stands at around Rs 138 per share, implying a premium of nearly 17.10% over the upper IPO price of Rs 807. At the current GMP, the estimated listing price works out to around Rs 945 per share.
However, the GMP is an unofficial indicator and can fluctuate significantly before the listing. It should therefore be viewed as an indication of market sentiment rather than a guarantee of listing gains.
How will Molbio Diagnostics Plans use IPO proceeds
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 deployed as capital expenditure towards developing a research and development facility, Centre of Excellence and related office infrastructure.
The company will also spend Rs 80.81 crore on plant, machinery and other equipment for its manufacturing facilities in Goa and Visakhapatnam.
The remaining funds will be used for general corporate purposes. 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 and battery-operated PCR-based molecular diagnostic system designed to provide accurate test results within an hour, particularly in resource-constrained healthcare environments.
Molbio Diagnostics financial performance
Molbio Diagnostics reported strong financial growth ahead of its public issue. Total income increased 42% year-on-year to Rs 1,455 crore in FY26 from Rs 1,027 crore in FY25. Profit after tax (PAT) rose 18% to Rs 164 crore in FY26, compared with Rs 138.58 crore in the previous financial year.
The company is entering the capital markets with plans to expand diagnostic infrastructure, strengthen its R&D capabilities and scale its global healthcare footprint.
Should you bid?
Swastika Research has recommended subscribing to the Molbio Diagnostics IPO, citing attractive valuations and strong growth prospects. The brokerage noted that the issue is priced below the 64.9x average P/E of listed peers, making the valuation relatively reasonable.
The Rs 200 crore fresh issue will fund capacity expansion at the company's Goa and Visakhapatnam facilities. The proceeds are intended for growth-focused capital expenditure rather than debt reduction, supporting Molbio's expansion plans.
According to the research firm, Molbio's strong position in molecular diagnostics, scalable business model and favourable industry trends support the long-term investment case. Healthy return ratios and potential margin expansion further add to the case for the stock.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
