Molbio Diagnostics IPO Oversubscribed 3.11X: Strong Investor Demand

Molbio Diagnostics Ltd.’s initial public offering (IPO) was oversubscribed 3.11 times by its second day, receiving bids for 2,53,53,108 shares against 81,58,529 shares on offer.

Subscription Breakdown

• Non-institutional investors oversubscribed their portion by 5.21 times.
• Retail investors bid 3.18 times their reserved shares.
• Qualified Institutional Buyers (QIBs) saw 1.39 times subscription.

The company, backed by Temasek and Motilal Oswal Private Equity, had already secured Rs 281.5 crore from anchor investors.

IPO Details and Fund Allocation

The IPO, closing Wednesday, carries a price band of Rs 768-807 per share and aims to raise around Rs 940 crore at the upper end.

• Fresh issue of shares: up to Rs 200 crore.
• Offer-for-sale (OFS): up to 91.66 lakh equity shares from existing shareholders.
• Rs 106 crore from fresh issue for an R&D facility, Centre of Excellence, and office space.
• Rs 72 crore for purchasing plant, machinery, and equipment for Goa Unit I, Goa Unit II, and Visakhapatnam units.
• Remaining funds for general corporate purposes.

Company Profile

Founded in 2000, Molbio Diagnostics operates as a point-of-care diagnostics company.

It provides molecular testing for over 30 diseases, including tuberculosis, COVID, HIV, HPV, and Hepatitis B and C, via its ‘Truenat’ platform, patented in over 100 countries.

This battery-operated PCR platform enables decentralized diagnosis within an hour, even in resource-limited areas. Shares are scheduled for listing on the BSE and NSE on August 17.