The company has fixed the IPO price band at ₹768-807 per share. Investors can bid for a minimum of 18 equity shares and in multiples thereafter.
Should you subscribe?
SBI Securities: Subscribe for long term
SBI Securities said Molbio Diagnostics is a leading player in point-of-care (POC) molecular diagnostics, backed by its proprietary and WHO-endorsed Truenat platform.
The company has delivered healthy financial performance between FY24 and FY26, with revenue, EBITDA and adjusted profit after tax growing at a compound annual growth rate (CAGR) of 31.5%, 17.2% and 9.7%, respectively.
At the upper end of the price band, the issue is valued at 56.5 times FY26 earnings and 28.5 times EV/EBITDA. The brokerage said the valuation appears reasonable considering the company’s growth profile, profitability, return ratios and established position in the diagnostics ecosystem.
Going forward, growth is expected to be driven by the expansion of its assay portfolio, increasing adoption of molecular diagnostics, international market penetration and investments in research and development and manufacturing capabilities.
However, dependence on TB-related testing revenue, customer concentration and government procurement programmes remain key monitorables, SBI Securities said.
Given Molbio’s strong technology platform and established market position, the brokerage has recommended subscribing to the issue for the long term.
Master Capital Services: Long-term opportunity
Master Capital Services said Molbio Diagnostics is well positioned to benefit from rising demand for molecular diagnostics through its proprietary Truenat platform.
The brokerage highlighted the company’s R&D capabilities, global patent portfolio, strategic acquisitions in radiology and digital pathology, six manufacturing facilities and presence across more than 90 countries as key strengths supporting its growth prospects.
Investors may consider the IPO as a potential long-term investment opportunity, the brokerage said.
Molbio Diagnostics IPO: Anchor book and pre-IPO deal
The International Finance Corporation (IFC), the private-sector investment arm of the World Bank Group, has returned as an anchor investor in India’s mainboard IPO market after a gap of five years, investing ₹20 crore in Molbio Diagnostics.
IFC last participated as an anchor investor in an Indian IPO in June 2021, when it invested ₹10 crore in Dodla Dairy. According to media reports, the institution remained invested in Dodla Dairy for three years, until 2024.
The investment provides a notable institutional endorsement for Molbio Diagnostics, which is regarded as Goa’s first unicorn and is backed by Temasek and Motilal Oswal Private Equity.
HDFC Mutual Fund led the anchor book with an investment of ₹35 crore across four schemes – HDFC Pharma and Healthcare Fund, HDFC Value Fund, HDFC Innovation Fund and HDFC MNC Fund.
Ahead of the IPO, Molbio also undertook a secondary share sale at ₹807 per share, the upper end of the IPO price band.
Investors participating in the secondary transaction included 360 One Equity Opportunity Fund, 360 One Equity Opportunity Fund – Series 4, 3P India Equity Fund 1, Neo Prime Fund, Neo Secondaries Fund, Neo Markets Services Private Limited, WhiteOak Capital India Opportunities Fund and Motilal Oswal Value Migration Fund Series I.
Kotak Mahindra Life Insurance Company and Susquehanna Asia Technology Pty Ltd also participated in the secondary purchase.
Among the investors, 360 ONE Asset invested ₹30 crore, while 3P Investment Managers, Neo Alternative Asset Managers, Kotak Mahindra Life Insurance and Susquehanna International Group invested ₹25 crore each. WhiteOak Capital Asset Management invested ₹20 crore, while Motilal Oswal Asset Management invested ₹10 crore.
The pre-IPO secondary transaction indicates strong institutional interest in Molbio Diagnostics ahead of its market debut.
Molbio Diagnostics IPO details
At the upper end of the price band, the IPO is valued at ₹930.7 crore. The issue comprises a fresh issue of shares worth ₹200 crore and an offer for sale (OFS) of 91.66 lakh shares by existing shareholders.
The OFS includes shares being sold by promoters Exxora Trading and Dr Chandrasekhar Bhaskaran Nair, investor India Business Excellence Fund and seven other shareholders.
Following the issue, the promoters’ stake will dilute from the current 46.65%. The remaining 53.35% is held by investors, including Temasek Holdings-backed V Sciences Investments and Motilal Oswal Group’s India Business Excellence Fund.
About Molbio Diagnostics
Goa-based Molbio Diagnostics develops point-of-care diagnostic solutions. Its flagship Truenat platform, which is patented in more than 100 countries, enables rapid molecular testing for diseases including tuberculosis (TB), COVID-19, Hepatitis B and C, Human Immunodeficiency Virus (HIV) and Human Papillomavirus (HPV).
The PCR-based platform is designed to deliver decentralised diagnostic results within an hour, particularly in resource-constrained settings.
Molbio plans to use ₹105.5 crore from the fresh issue proceeds to establish a research and development facility and Centre of Excellence through its wholly owned subsidiary Bigtec, along with office infrastructure.
Another ₹72.2 crore will be used to purchase plant, machinery and equipment for its manufacturing facilities in Goa and Visakhapatnam. The remaining proceeds will be used for general corporate purposes.
The company reported strong financial performance in FY26, with net profit rising 14.8% year-on-year to ₹166.6 crore, while revenue increased 41.7% to ₹1,445.7 crore.
Kotak Mahindra Capital Company, IIFL Capital Services and Jefferies India are the book-running lead managers to the issue.
The basis of allotment is expected to be finalised on August 13, while Molbio Diagnostics’ shares are likely to list on the stock exchanges on August 17.
