Molbio Diagnostics made a strong stock market debut on Monday (August 17) at a premium of over 21 per cent, after the issue received a solid response in the primary market.
Molbio Diagnostics shares opened at Rs 980 on the BSE, with a premium of Rs 173 or 21.44 per cent over the issue price of Rs 807. On the other hand, the stock opened at Rs 980 on the NSE, surging Rs 173 or 21.44 per cent from the IPO price.
Lists at Rs 980/share on NSE vs issue price of Rs 807/share
Lists at 21.4% premium on NSE vs issue price of Rs 807/share
Lists at Rs 980/share on BSE vs issue price of Rs 807/share
Lists at 21.4% premium on BSE vs issue price of Rs 807/share
The initial public offering of point-of-care diagnostics company Molbio Diagnostics received 70.26 times subscription on the final day of bidding last week on Wednesday.
The Rs 940-crore IPO got bids for 57,32,14,536 shares against 81,58,529 shares on offer, as per NSE data.
The portion for Qualified Institutional Buyers (QIBs) received a whopping 186.39 times subscription. The category for non-institutional investors was subscribed 49.80 times and that of retail investors 12.96 times.
Backed by Temasek and Motilal Oswal Private Equity, Molbio Diagnostics Ltd, raised Rs 281.5 crore from anchor investors.
The IPO has a price band of Rs 768-807 per share.
The Goa-based company’s IPO comprised a fresh issue of shares, worth up to Rs 200 crore, and an offer-for-sale (OFS) of up to 91.66 lakh equity shares by existing shareholders.
The company proposes to utilise Rs 106 crore from the fresh issue proceeds towards capital expenditure for setting up infrastructure for an R&D facility, Centre of Excellence and connected office space.
Another Rs 72 crore will be deployed towards the purchase of plant, machinery and other equipment for its Goa Unit I, Goa Unit II and Visakhapatnam unit, while the remaining funds will be used for general corporate purposes.
At the upper end of the price band, Molbio Diagnostics is expected to command a post-issue market valuation of around Rs 9,300 crore.
Incorporated in 2000, Molbio Diagnostics is a point-of-care diagnostics company offering molecular testing for 30 diseases, including tuberculosis, COVID, HIV, HPV and Hepatitis B and C.
Its ‘Truenat’ platform, patented in more than 100 countries for diagnosis of multiple infectious and non-communicable diseases, is a point-of-care polymerase chain reaction (PCR) platform. The battery-operated platform can be deployed in resource-limited settings and facilitates decentralised diagnosis within an hour.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
