Temasek-backed Molbio Diagnostics Files RHP, to Raise INR 200 Cr Via IPO

The initial price band has been fixed for the initial public offering (IPO) at INR 768-807 per share.

Temasek and Motilal Oswal Group-backed Molbio Diagnostics has filed its red herring prospectus (RHP) with the Registrar of Companies, ahead of its initial public offering (IPO), which is scheduled to open for public subscription on August 10.

Through the IPO, the diagnostic company aims to raise INR 200 crore via a fresh issue of shares, while existing shareholders will sell 91.66 lakh shares through an offer-for-sale.

The issue counts Temasek and Motilal Oswal among its backers, lending institutional credibility to the offering ahead of its market debut on the exchanges.

The Molbio Diagnostics IPO lot size is 18 equity shares and in multiples of 18 equity shares thereafter.

The initial price band has been fixed for the initial public offering (IPO) at INR 768-807 per share.

The OFS consists of 9.17 million shares, including the shares being sold by promoters Exxora Trading and Dr Chandrasekhar Bhaskaran Nair, investor India Business Excellence Fund, and seven other shareholders.

As per reports, Exxora Trading LLP, one of the promoters, plans to offer 1.81 million shares, while promoter Dr Chandrasekhar Bhaskaran Nair, together with Anita Angela Chandrasekhar, will offer 1.22 million shares.

India Business Excellence Fund III, managed by the Motilal Oswal Group, will divest one million shares. The remaining shares will be offered by 14 other existing shareholders, who will also partially reduce their stake in the company.

The IPO also includes a reservation for eligible employees worth up to INR 1.50 crore. Of the net offer, up to 50% has been reserved for qualified institutional buyers (QIBs), at least 15% for non-institutional investors (NIIs), and at least 35% for retail individual investors. Additionally, up to 60% of the QIB allocation may be allotted to anchor investors.

Further, the company will not receive any proceeds from the OFS. The money raised through this portion will go to the selling shareholders after deducting applicable expenses and taxes.

Following the issue, the promoters' stake will dilute from the current 46.65%, while the remaining 53.35% is held by investors, including Temasek Holdings-backed V Sciences Investments and Motilal Oswal Group's India Business Excellence Fund.

According to the company's draft papers, the company plans to utilise INR 105.5 crore from the fresh issue proceeds to establish a research and development facility, a Centre of Excellence, and office infrastructure through its wholly owned subsidiary, Bigtec.

In addition, another INR 72.2 crore has been earmarked for the purchase of plant, machinery, and equipment for its manufacturing facilities in Goa and Visakhapatnam, while the remaining proceeds will be used for general corporate purposes.

Founded in 2000, Goa-based Molbio Diagnostics develops molecular diagnostic devices for testing outside conventional laboratories.

Its flagship Truenat platform is a battery-operated, portable polymerase chain reaction (PCR) system that delivers test results in about an hour using the Trueprep sample-preparation device and the Truelab analyser.

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.

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