Molbio Diagnostics IPO Sees Strong 83% Subscription on Day 1

Molbio Diagnostics Ltd's initial public offering (IPO) experienced robust demand on its first day, achieving an 83% subscription rate. Qualified Institutional Buyers (QIBs) fully subscribed their allocated portion, indicating strong institutional interest in the diagnostics company.

The IPO, which opened on August 10 and is set to conclude on August 12, aims to raise an estimated Rs 904 crore to Rs 940 crore. The company, a Goa-based diagnostics firm specializing in point-of-care molecular testing, plans to use a significant portion of the Rs 200 crore fresh issue proceeds for infrastructure development, including an R&D facility and a Centre of Excellence.

Additional funds will be allocated for purchasing machinery and equipment for its manufacturing units. The offering also includes an offer for sale by existing shareholders. Molbio Diagnostics, known for its 'Truenat' platform, offers diagnostic solutions for over 30 diseases, including infectious and non-communicable conditions, with its technology patented globally.

Investors can subscribe to the IPO within a price band of Rs 768-807 per share. At the upper price band, Molbio Diagnostics is anticipated to achieve a post-issue market valuation of approximately Rs 9,300 crore. The company's shares are scheduled for listing on the BSE and NSE on August 17.