Molbio Diagnostics IPO Gets Subscribed 83% on Day 1

New Delhi: The initial public offering of Molbio Diagnostics Ltd received 83 per cent subscription on Monday, the first day of share sale.

The company’s IPO got bids for 67,67,496 shares against 81,58,529 shares on offer, according to details available with the NSE.

Qualified Institutional Buyers (QIBs) portion received full subscription. The category for retail investors was subscribed 77 per cent and that of non-institutional investors 73 per cent.

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 August 12. The initial share sale is estimated at Rs 904 crore to Rs 940 crore at the lower and upper ends of the price band, respectively.

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.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)