Molbio Diagnostics IPO fully subscribed on day 2; NIIs lead with 3x bids

The initial public offering (IPO) of Molbio Diagnostics Ltd. was fully subscribed as it received 2.25 times the subscription on the second day of the share sale on Tuesday.

 

The company's IPO garnered bids for 1,83,79,566 shares against 81,58,529 shares on offer, as per BSE data.

 

The category for qualified institutional buyers (QIBs) fetched 1.20 times subscription, while the quota for non-institutional investors received 3.35 times subscription. Retail investors portion was subscribed 2.38 times.

 

Molbio Diagnostics IPO will close for bidding tomorrow 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 commercialises 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.

 

Molbio Diagnostics IPO GMP was ₹122 earlier today, suggesting an estimated listing price of ₹929, a premium of 15.12 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.

 

Most brokerages recommended subscribing to the offer from a long-term perspective, noting that the company is well positioned to benefit from the growing demand for molecular diagnostics through its proprietary Truenat platform. Analysts also said that the 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. 

 

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

 

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