- IPO opens on August 10 with a price band of ₹768-807 per share as molecular diagnostics leader prepares for its next growth phase
- Fresh capital to power Bengaluru R&D campus, automation of Goa manufacturing facilities and next-generation diagnostic platforms
- Truenat’s proprietary technology, strong IP protection and presence in over 90 countries position the company for sustained global expansion
- Nearly 200-member R&D team driving continuous innovation under Dr Chandrasekhar Bhaskaran Nair
- Employee reservation with ₹76 discount reflects inclusive wealth creation strategy
- Portable diagnostics, cancer screening collaborations and global healthcare solutions strengthen long-term growth outlook
R MANICKAVASAGAM
AHMEDABAD, AUGUST 6
In a strong endorsement of India’s rapidly expanding healthcare technology ecosystem, Goa-based Molbio Diagnostics Ltd on Thursday unveiled an ambitious roadmap for its ₹931-crore Initial Public Offering (IPO), outlining aggressive investments in research, automation and global expansion as it seeks to reinforce its position among the world’s leading molecular diagnostics companies.
The IPO, priced in the band of ₹768-807 per equity share, will open for subscription on August 10 and close on August 12, while the Anchor Investor portion opens on August 7. Investors can bid for a minimum of 18 equity shares and thereafter in multiples of 18.
Addressing a media interaction in Ahmedabad, the company’s senior leadership said the fresh capital would significantly strengthen Molbio’s innovation pipeline, manufacturing capabilities and international footprint while accelerating the development of next-generation diagnostic technologies.
The public issue comprises a fresh issue of equity shares worth ₹200 crore and an Offer for Sale (OFS) of ₹740 crore, aggregating to approximately ₹931 crore.
Explaining the utilisation of fresh proceeds, Indraneil Borkakoty, President (Corporate Strategy, M&A, Investor Relations), said: “The fresh capital will primarily be used in two areas. Research and development is at the core of our business, and ₹105 crore will be spent on an R&D unit in Bengaluru. We already own the land; the funding will be used to build our own infrastructure and premises there.”
He added: “A further ₹72 crore will be used to automate both our Goa plants, which manufacture test kits. The objective is to improve efficiency across the manufacturing chain and reduce production costs. The balance will be used for general corporate purposes.”
Highlighting the strategic significance of the Bengaluru facility, Sriram Natarajan, Executive Director and Chief Executive Officer, said the company had already outgrown its present research infrastructure.
“The existing centre operates from a leased premise. We want to consolidate the operations at our own facility. Our R&D capability has effectively doubled, and we are seriously working on several new platforms. Having our own facility will improve operational efficiency.”
He further credited the company’s innovation engine to its scientific leadership.
“Dr Chandrasekhar Bhaskaran Nair leads a nearly 200-member R&D team to create cutting-edge technology and continuously upgrade our next-generation diagnostics products.”
Responding to questions on the competitive strength of Truenat, Molbio’s flagship molecular diagnostics platform, Shiva Sriram, President-Business Development, emphasised that years of investment in innovation have created significant technological barriers for competitors.
“Having invested heavily in R&D, we have taken all necessary safeguards to protect the same with advanced technologies.”
The company believes its proprietary technologies, continuous innovation and intellectual property protection provide a durable competitive moat against larger global diagnostics and medical-device manufacturers.
On overseas business, Indraneil Borkakoty said Molbio has successfully built a strong international franchise.
“With our presence in more than 90 countries, a major portion of our revenue comes from overseas.”
The company expects international markets to remain a key driver of future growth as demand rises for rapid, portable and affordable molecular diagnostic solutions across emerging as well as developed healthcare systems.
Molbio has emerged as one of India’s leading molecular diagnostics companies through its flagship Truenat platform, a portable, battery-operated, chip-based real-time PCR technology capable of delivering rapid and accurate diagnostic results even in remote settings. The platform has gained significant acceptance for tuberculosis, COVID-19 and several infectious disease applications, making it particularly relevant for decentralised healthcare delivery.
The company’s growth strategy also extends beyond molecular diagnostics. In 2023, Molbio acquired Prognosys Medical Systems, manufacturer of Prorad digital X-ray systems, to build integrated e-clinics equipped with portable imaging and diagnostic solutions.
“We also have a collaboration with UE LifeSciences to strengthen our cancer-screening and diagnostics vertical. It involves a handheld, radiation-free breast-scanning device capable of detecting abnormalities in breast tissue at an early stage,” Borkakoty said.
According to the company, the Offer for Sale includes shares from promoter entities Exxora Trading LLP, Dr Chandrasekhar Bhaskaran Nair, India Business Excellence Fund III and other shareholders. Promoters currently hold nearly 46 per cent of the company’s equity, while marquee investors including Temasek Holdings (through V Sciences Investments Pte Ltd) and Motilal Oswal Alternate Investment Advisors also own stakes.
The company has reserved an Employee Reservation Portion aggregating up to ₹15 million, with eligible employees receiving a discount of ₹76 per equity share, reflecting its commitment to employee participation in wealth creation.
As per SEBI regulations, at least 35 per cent of the Net Offer has been earmarked for Retail Individual Investors, while not less than 15 per cent has been reserved for Non-Institutional Investors, with allocations across specified investment categories.
The equity shares are proposed to be listed on both the BSE and the National Stock Exchange (NSE).
Kotak Mahindra Capital Company Limited, IIFL Capital Services Limited, Jefferies India Private Limited and Motilal Oswal Investment Advisors Limited are the Book Running Lead Managers to the issue.
