Molbio Diagnostics IPO: GMP at 16%; should you apply as offer opens today?
Molbio Diagnostics IPO: Molbio is a molecular diagnostic company that develops, manufactures, and commercializes point-of-care (POC) molecular diagnostic platforms.
 "Molbio Diagnostics IPO: GMP at 16%; should you apply as offer opens today?")
Molbio Diagnostics IPO: The near ₹940-crore initial public offering (IPO) of Molbio Diagnostics, which kicks off for bidding on August 10, has garnered positive responses from brokerages. The grey market premium (GMP) for the offer remains firm, adding to its appeal.
Molbio Diagnostics IPO will close for bidding later this week on Wednesday (August 12). The offer is a mix of fresh issue of ₹200 crore and offer for sale (OFS) of ₹739.70 crore. The price band for the offer has been fixed at ₹768 to ₹807 per share.
Molbio is a molecular diagnostic company that develops, manufactures, and commercializes point-of-care (POC) molecular diagnostic platforms. It is focused on providing rapid, accurate, and cost-effective diagnostic solutions for infectious and non-communicable diseases.
It plans to use the funds from fresh proceeds on capital expenditure for R&D facilities and Centre of Excellence, investment in plant and machinery for Goa and Visakhapatnam facilities, along with general corporate purposes. Also Read | Dazed and confused; Milky Mist, Shiprocket GMP at 20%
Brokerages on Molbio Diagnostics IPO
Most brokerages recommended subscribing to the offer from a long-term perspective.
Swastika: Favourable long-term outlook
Swastika said that despite a sizeable OFS, the fresh proceeds are directed toward growth-oriented capital expenditure rather than debt reduction. Additionally, it took note of its strong leadership in the molecular diagnostics segment, supported by a scalable device-and-consumables business model and added that valuations are in line with the industry average.
Overall, it said that Molbio IPO has a favorable long-term outlook, backed by healthy return ratios, margin expansion, and structural industry growth.
SBI Securities: Subscribe for long term
This brokerage said that the company has demonstrated healthy financial performance over FY24-26, with revenue/EBITDA/adjusted PAT growing at a CAGR of 31.5 per cent/17.2 per cent/9.7 per cent, respectively.
At the upper price band of ₹807, the issue is priced at an FY26 P/E of 56.5x and EV/EBITDA of 28.5x, and appears reasonably valued relative to its growth profile, profitability metrics, return ratios and established position in the diagnostics ecosystem, it added. Also Read | Molbio eyes overseas growth
"Considering the company's strong technology platform and established market position, we recommend investors to SUBSCRIBE to the issue for Long Term investment horizon," it said. Dependence on TB-related testing revenues, customer concentration, and government procurement programs remain key monitorables.
Master Capital: Long-term investment opportunity
Molbio Diagnostics is well positioned to benefit from the growing demand for molecular diagnostics through its proprietary Truenat platform, said Master Capital. Its strong competitive position is supported by R&D, a robust global patent portfolio, strategic acquisitions in radiology and digital pathology, six manufacturing facilities, and a presence in more than 90 countries, providing a strong foundation for future growth, said the brokerage. "Investors may consider the IPO as a potential long-term investment opportunity."
Molbio Diagnostics IPO GMP
Molbio Diagnostics IPO GMP was ₹132 earlier today, suggesting an estimated listing price of ₹939, a premium of 16 per cent over the upper end of the price band of ₹807. Shares of the company are slated to list on both BSE and NSE on August 17.
Kotak Mahindra Capital, IIFL Capital Services, Jefferies India and Motilal Oswal Investment Advisors are the book-running lead managers.
Disclaimer: Views and outlook shared belong to the respective brokerages/analysts and are not endorsed by Business Standard. Readers' discretion is advised.