Image Source: Startup Talky
Goa-based Molbio Diagnostics Ltd, a pioneer in point-of-care molecular diagnostics, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise capital through an initial public offering. The IPO will comprise a fresh issue of equity shares worth ₹200 crore and an offer-for-sale (OFS) of up to 1.25 crore shares by existing investors. Backed by Temasek Holdings and Motilal Oswal Private Equity, the company is targeting a valuation of over ₹12,000 crore, marking one of the most anticipated public listings in India’s healthcare diagnostics space.
Key Highlights
IPO includes a ₹200 crore fresh issue and OFS of 1.25 crore shares by promoters and investors
Proceeds to fund R&D infrastructure, manufacturing upgrades, and general corporate purposes
Valuation pegged at ₹12,490 crore post bonus issue adjustment
FY25 revenue at ₹1,020 crore, with net profit of ₹138.5 crore
Kotak Mahindra Capital, IIFL Capital Services, Jefferies India, and Motilal Oswal Investment Advisors appointed as lead managers
Offer Structure and Shareholder Exit
The offer-for-sale component will see partial exits by key stakeholders:
Promoters Exxora Trading LLP and Dr Chandrasekhar Bhaskaran Nair to offload 29.12 lakh shares
Institutional investors including V Sciences Investments (Temasek subsidiary) and India Business Excellence Fund III (Motilal Oswal PE) to sell 96.44 lakh shares
Other individual shareholders such as Gopalkrishna Mangalore Kini and Sangeetha M Kini also participating in OFS
This move allows early investors to monetize their holdings while enabling Molbio to raise fresh capital for strategic expansion.
Use of Proceeds
Molbio plans to deploy the IPO proceeds across three key areas:
₹99.3 crore for establishing a new Research and Development facility, Centre of Excellence, and associated office infrastructure
₹73.5 crore for purchasing plant and machinery for its Goa and Visakhapatnam manufacturing units
Remaining funds earmarked for general corporate purposes, including working capital and operational scaling
This investment will support Molbio’s goal of expanding its diagnostic capabilities and reinforcing its leadership in rapid molecular testing.
Business Overview and Product Portfolio
Founded in 2000, Molbio Diagnostics specializes in point-of-care molecular diagnostics for over 30 diseases, including tuberculosis, COVID-19, HIV, HPV, and hepatitis B & C. Its flagship product, the Truenat platform, is a battery-operated, portable PCR device capable of delivering results within an hour—even in resource-limited settings.
Truenat is patented in over 100 countries and is one of only two rapid molecular TB tests globally
The company operates five manufacturing facilities: two in Goa, one in Visakhapatnam, and two in Bengaluru
Subsidiary Prognosys Medical Systems handles production of devices, test kits, and radiology equipment
As of March 31, 2025, Molbio’s annual production capacity stood at 3,600 diagnostic devices and 3.9 crore Truenat test kits.
Financial Performance
Molbio has demonstrated strong financial growth over the past three years:
FY25 revenue: ₹1,020 crore (up 22 percent year-on-year)
FY25 net profit: ₹138.5 crore (up 66 percent year-on-year)
Total assets: ₹1,461 crore as of March 2025
The company’s profitability and operational scale make it a compelling candidate for public market participation.
Strategic Outlook
Molbio operates in an oligopolistic market with high entry barriers, especially in molecular diagnostics. Its IPO is expected to:
Strengthen its R&D pipeline and global patent portfolio
Expand manufacturing capabilities to meet rising demand
Enhance visibility and credibility in international markets
With robust fundamentals and a differentiated product offering, Molbio’s public debut could set a benchmark for innovation-led healthcare IPOs in India.
Sources: Moneycontrol, MSN India
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