Molbio Diagnostics Files IPO Papers with Sebi to Raise Rs 200 Crore for Expansion

Molbio Diagnostics Limited, based in Goa and supported by Temasek and Motilal Oswal Private Equity, has submitted draft documents to Sebi for an IPO. The draft red herring prospectus outlines plans for a fresh equity issue worth Rs 200 crore and an offer-for-sale of up to 1.25 crore shares by current shareholders.

The company intends to allocate Rs 99.3 crore from the proceeds to develop infrastructure for a new Research and Development facility, a Centre of Excellence, and associated office space. An additional Rs 73.5 crore is earmarked for acquiring plant and machinery for its manufacturing units in Goa and Visakhapatnam. The remaining funds will be used for general corporate purposes, according to a spokesperson.

Molbio's Diagnostic Innovations

Founded in 2000, Molbio Diagnostics specialises in point-of-care molecular diagnostics for over 30 diseases, including tuberculosis, COVID-19, HIV, HPV, and Hepatitis B & C. Its flagship Truenat platform is a portable PCR device that provides test results within an hour, even in resource-limited settings. This platform holds patents in more than 100 countries.

The company operates five manufacturing facilities: two in Goa, one in Visakhapatnam, and two in Bengaluru. These facilities produce devices, test kits, and radiology equipment through its subsidiary Prognosys Medical Systems. As of March 31, 2025, Molbio had an annual installed capacity of 3,600 devices and 3.9 crore Truenat test kits.

Financial Performance and Management

For the fiscal year 2025, Molbio reported operational revenue of Rs 1,020 crore, marking a nearly 22% increase from the previous year. The profit after tax was recorded at Rs 138.5 crore. Kotak Mahindra Capital, IIFL Capital Services, Jefferies India, and Motilal Oswal Investment Advisors are serving as book-running lead managers for the IPO.

The company's strategic growth plans include expanding its research capabilities and enhancing its production facilities to meet increasing demand. This expansion is crucial for maintaining its competitive edge in the molecular diagnostics market.

With inputs from PTI