Molbio Diagnostics Files IPO with Sebi; Plans INR 200 Cr Fresh Issue

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

Molbio Diagnostics, a Goa-based molecular diagnostics company backed by Temasek and Motilal Oswal Private Equity, has filed draft papers with the Securities and Exchange Board of India (Sebi) for an initial public offering (IPO).

According to the draft red herring prospectus (DRHP), the IPO will include a fresh issue of equity shares worth up to INR 200 crore and an offer-for-sale (OFS) of up to 1.25 crore equity shares by existing shareholders.

Fund allocation for R&D and manufacturing units

The company plans to use INR 99.3 crore from the proceeds to set up infrastructure for a new Research and Development facility, a Centre of Excellence, and connected office space. 

Another INR 73.5 crore will be directed towards the purchase of plant and machinery for its manufacturing units in Goa and Visakhapatnam. 

The remaining funds will be used for general corporate purposes, a spokesperson said.

Diagnostics portfolio and financials

Founded in 2000, Molbio Diagnostics is engaged in point-of-care molecular diagnostics for over 30 diseases, including tuberculosis, COVID-19, HIV, HPV, and Hepatitis B & C.

Its flagship platform, 'Truenat,' patented in more than 100 countries, is a battery-operated portable PCR system capable of delivering test results within an hour in resource-limited settings.

The company currently operates five manufacturing facilities, two in Goa, one in Visakhapatnam, and two in Bengaluru,  producing devices, test kits, and radiology equipment through its subsidiary Prognosys Medical Systems.

As of March 31, 2025, Molbio had an installed capacity of 3,600 devices and 3.9 crore Truenat test kits annually. For FY25, the company reported revenue from operations of INR 1,020 crore, reflecting a 22 per cent year-on-year increase, while profit after tax stood at INR 138.5 crore, the spokesperson added.

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

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