Molbio IPO: Day 2 Bidding, GMP Signals 15.74% Listing Gain
By IPO Desk
Molbio Diagnostics IPO enters day two of bidding, closing August 12. Grey market premium suggests a potential 15.74% listing gain despite initial subscription rates.
Molbio Diagnostics’ IPO, targeting Rs 939.70 crore, is in its second day of bidding, set to close on August 12. Despite not fully subscribing on day one, the grey market premium hints at a potential 15.74% listing gain.
Key IPO Figures
- IPO Value: Rs 939.70 crore
- Price Band: Rs 768-807 per share
- Lot Size: 18 shares
- Retail Application (upper band): Rs 14,526
- Fresh Issue: Rs 200 crore
- Offer for Sale: Rs 739.70 crore
- Expected Listing: August 17 on BSE and NSE
On its first day, the IPO saw an overall subscription of 0.83 times. Retail investors subscribed 0.77 times, while the QIB category reached 1 time (excluding anchor investors), and the NII category stood at 0.73 times.
Market Sentiment & Brokerage View
The grey market premium (GMP) for Molbio Diagnostics is Rs 127, projecting an estimated listing price of Rs 934 per share. This indicates a potential listing gain of around 15.74% over the upper IPO price band.
Brokerages like Geojit Investments, Ventura Securities, BP Equities, SBI Securities, and Swastika Securities have advised subscribing. They cite Molbio’s strong position in molecular diagnostics and its proprietary Truenat platform for point-of-care testing.
Company Strengths & Risks
- Recurring Revenue Model: Accounts for 74% of product revenue in FY26.
- Revenue Growth: Operations revenue increased by 41.7% from FY25 to FY26.
- Customer Concentration: 84.6% of FY26 product sales revenue from governments and international aid agencies.
- Top Customer Reliance: Top 10 customers contribute 83.3% of product sales.
- Tuberculosis Testing Dependence: Made up 70.2% of FY26 test-kit sales revenue.
- Valuation: Approximately 55-56 times FY26 earnings at the upper price band.
Despite the positive GMP and brokerage recommendations, investors should note the unofficial nature of GMP. Key risks include high customer concentration and significant dependence on tuberculosis testing, alongside moderated margins and a long working capital cycle.