- Molbio Diagnostics' IPO opens for subscription today, August 10, with a price band of ₹768-807 per share.
- The GMP at ₹132 earlier today suggests an estimated listing price of ₹939, indicating a 16% premium over the upper band.
- The IPO will close on August 12, with shares expected to list on BSE and NSE on August 17.
- The IPO comprises a mix of fresh issue of ₹200 crore and an offer for sale (OFS) of ₹739.70 crore.
- Funds from the fresh proceeds will be used for capital expenditure for R&D facilities and general corporate purposes.
- Brokerages have given a positive outlook on the IPO, citing healthy return ratios and margin expansion.
- 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.
Molbio Diagnostics' IPO opened for subscription today, August 10, with a grey market premium (GMP) of ₹132, suggesting a listing price of ₹939, a 16% premium over the upper price band of ₹807.127
The IPO aims to raise nearly ₹940 crore, comprising a fresh issue of ₹200 crore and an offer for sale (OFS) of ₹739.70 crore.4
The price band is set between ₹768 and ₹807 per share, with a minimum bid of 18 shares.
Brokerages have expressed a positive outlook, citing the company's strong technology platform and market position. They recommend investors to subscribe for long-term investment, highlighting the company's projected revenue growth of 31.5% CAGR and EBITDA growth of 17.2% CAGR from FY24 to FY26.6
Despite a significant OFS, the fresh proceeds are directed towards growth-oriented capital expenditures, including R&D facilities and investments in plant and machinery in Goa and Visakhapatnam.5
However, analysts note that the company’s dependence on TB-related testing revenues and customer concentration are key factors to monitor.
At the upper price band, the IPO is priced at an FY26 P/E of 56.5x and EV/EBITDA of 28.5x, which appears reasonably valued relative to its growth profile and profitability metrics.
“The ₹930.7-crore issue combines a ₹200-crore fresh issue with a ₹739.70-crore offer for sale, with proceeds earmarked for R&D facilities and plant machinery in Goa and Visakhapatnam. Brokerages cite FY26 P/E of 56.5x and revenue CAGR of 31.5% over FY24-26 as supporting the valuation.”
