Molbio Diagnostics shares rally 6% after strong debut. What should investors do?
The strong debut surpassed grey market expectations, which had indicated a listing premium of around 15%.
Market experts remain positive on Molbio Diagnostics’ long-term prospects, citing its leadership in molecular diagnostics, expansion-led growth strategy and attractive industry prospects as supporting the investment case. However, investors should remain disciplined following the sharp initial gain.
Also Read | Molbio Diagnostics shares list at 21% premium over IPO price on BSE, NSE
“Molbio Diagnostics also witnessed a healthy debut, listing at a 21.4% premium to the issue price. Its leadership in molecular diagnostics, expansion-led growth strategy and attractive industry prospects support the investment case,” said Shivani Nyati Head of Wealth, Swastika Investmart
“While the listing valuation remains reasonable relative to peers, investors should remain disciplined following the sharp initial gain. We maintain a positive view with a stop-loss of Rs 900,” she further said.
The Rs 939.70 crore IPO which opened on August 10 and closed on August 12, received an overwhelming response from investors, with the issue subscribed 70.26 times overall. Qualified institutional buyers (QIBs) led the demand with a staggering 186.39 times subscription, while non-institutional investors (NIIs) subscribed 49.80 times and retail investors 12.96 times.The IPO was priced at Rs 807 per share and comprised a fresh issue of 25 lakh shares worth Rs 200 crore and an offer for sale (OFS) of 92 lakh shares valued at Rs 739.70 crore.
The company, backed by Temasek and Motilal Oswal Private Equity, allotted 34.87 lakh equity shares to 33 anchor investors at Rs 807 per share, the upper end of the IPO price band. Kotak Mahindra Capital Company is serving as the book-running lead manager for the issue, while KFin Technologies Ltd. is acting as the registrar.
How Molbio Diagnostics Plans to Use IPO Funds
Molbio Diagnostics intends to use the IPO proceeds to expand its infrastructure and strengthen its research and manufacturing capabilities. Around Rs 125.12 crore is earmarked for capital expenditure, including the development of a research and development facility, Centre of Excellence, and related office infrastructure.
The company plans to invest another Rs 80.81 crore in plant, machinery, and other equipment for its manufacturing facilities in Goa and Visakhapatnam. The remaining proceeds will be utilised for general corporate purposes. Overall, the 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 engaged in 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, battery-operated PCR-based molecular diagnostic system that can deliver accurate test results within an hour.
Molbio provides testing solutions for more than 30 diseases through 43 diagnostic assays, covering areas such as tuberculosis, COVID-19, HIV, Hepatitis B and C, and HPV.
Also Read | Molbio Diagnostics IPO Day 3: GMP hints at 17% listing gain, issue booked nearly 5x. Should you participate?
The company has also expanded beyond molecular diagnostics into radiology, digital pathology, and breast health screening through subsidiaries and strategic partnerships. Supported by its research and development capabilities, Molbio continues to expand its diagnostics product portfolio.
Strong Financial Performance
Molbio Diagnostics has reported strong financial growth ahead of its public issue. In FY26, the company’s total income rose 42% year-on-year to Rs 1,455 crore, compared with Rs 1,027 crore in FY25.
Profitability also improved during the year. Profit after tax (PAT) increased 18% to Rs 164 crore in FY26, up from Rs 138.58 crore in the previous financial year.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
