Molbio Diagnostics’ IPO attracts steady retail demand amid institutional coverage

Molbio Diagnostics’ ₹939.70 crore IPO saw subdued retail interest despite strong institutional coverage on its first day, with the company focusing on expanding its innovative rapid testing platform and research infrastructure.

Molbio Diagnostics’ initial public offering drew steady interest on its first day of bidding on Monday, with the issue subscribed 0.83 times overall, according to Zee Business. The response was led by qualified institutional buyers, whose portion was fully covered, while demand from retail investors and non-institutional investors was still below the shares on offer.

The company’s ₹939.70-crore float combines a fresh issue and an offer for sale. In the fresh portion, Molbio Diagnostics plans to raise ₹200 crore, while existing shareholders are looking to sell stock worth ₹739.70 crore. The price band has been fixed at ₹768 to ₹807 a share, with the issue set to close on Wednesday and a tentative listing date of August 17 on both the NSE and BSE, according to the offer details.

Molbio Diagnostics is best known for Truenat, its portable molecular diagnostics platform, which was developed for rapid testing in settings where laboratory infrastructure is limited. The company, founded in 2000 and based in Goa, has positioned the platform as a point-of-care system for infectious as well as non-communicable diseases, according to its draft prospectus and investor material.

Proceeds from the fresh issue are earmarked mainly for capacity expansion. Molbio has set aside ₹125.12 crore for research and development infrastructure, including a centre of excellence and related office space, and ₹80.81 crore for equipment at facilities in Goa and Visakhapatnam. The rest will go towards general corporate purposes, according to the company’s prospectus.