Molbio Diagnostics IPO Subscribed 3.11x on Day 2

New Delhi, Aug 11 (PTI) The initial share sale of Molbio Diagnostics Ltd was subscribed 3.11 times on the second day of bidding on Tuesday.

The three-day initial public offering (IPO) received bids for 2,53,53,108 shares against 81,58,529 shares on offer, according to NSE data.

The non-institutional investors bid for 5.21 times the shares reserved for them. The retail portion was subscribed 3.18 times and the Qualified Institutional Buyers (QIBs) booked their quota 1.39 times.

Point-of-care diagnostics company Molbio Diagnostics Ltd, backed by Temasek and Motilal Oswal Private Equity, has raised Rs 281.5 crore from anchor investors.

The IPO, with a price band of Rs 768-807 per share, will conclude on Wednesday. The mainboard issue is expected to garner around Rs 940 crore at the upper limit of the IPO price band.

The Goa-based company's IPO comprises a fresh issue of shares, worth up to Rs 200 crore, and an offer-for-sale (OFS) of up to 91.66 lakh equity shares by existing shareholders.

Under the OFS, Exxora Trading LLP, Dr Chandrasekhar Bhaskaran Nair, India Business Excellence Fund III, Gopalkrishna Mangalore Kini, J Guru Dutt, Gopalakrishna Sampathgiri, Sangeetha M Kini, M A Usha Rani, M A Rohit, Shruthi G Kini and several other shareholders will divest their stakes.


The company proposes to utilise Rs 106 crore from the fresh issue proceeds towards capital expenditure for setting up infrastructure for an R&D facility, Centre of Excellence and connected office space.

Another Rs 72 crore will be deployed towards the purchase of plant, machinery and other equipment for its Goa Unit I, Goa Unit II and Visakhapatnam unit, while the remaining funds will be used for general corporate purposes.

At the upper end of the price band, Molbio Diagnostics is expected to command a post-issue market valuation of around Rs 9,300 crore.

Incorporated in 2000, Molbio Diagnostics is a point-of-care diagnostics company offering molecular testing for 30 diseases, including tuberculosis, COVID, HIV, HPV and Hepatitis B and C.

Its 'Truenat' platform, patented in more than 100 countries for diagnosis of multiple infectious and non-communicable diseases, is a point-of-care polymerase chain reaction (PCR) platform. The battery-operated platform can be deployed in resource-limited settings and facilitates decentralised diagnosis within an hour.

The company's shares are proposed to be listed on the BSE and NSE on August 17.

Kotak Mahindra Capital Company, IIFL Capital Services, Jefferies India and Motilal Oswal Investment Advisors are the book-running lead managers to the issue.