Molbio Diagnostics sets Rs 768-807 band for Rs 940 crore IPO

The Development

Molbio Diagnostics Limited has fixed a price band of Rs 768 to Rs 807 per equity share for its initial public offering, per the red herring prospectus (RHP) dated 3 August 2026 filed with the Securities and Exchange Board of India (SEBI). At the top of the band the offer aggregates to about Rs 939.70 crore, comprising a fresh issue of Rs 200 crore and an offer for sale of up to 9,166,000 equity shares by existing shareholders. The Goa-based molecular diagnostics company is the maker of the 'Truenat' point-of-care testing platform.

Ahead of the public subscription window, anchor investors were allotted 34,87,717 equity shares at Rs 807 each on 7 August 2026, aggregating to about Rs 281.46 crore, per the BSE anchor allocation notice. The subscription window opens on 10 August and closes on 12 August 2026, with the basis of allotment expected on 13 August and listing on the BSE and NSE on 17 August. The anchor round was reported by The Economic Times.

The Company

Molbio Diagnostics describes itself in the RHP as "an innovative point-of-care ('POC') diagnostics company" focused on rapid, cost-effective testing for infectious and non-communicable diseases. Its Truenat platform is a portable, battery-operated real-time PCR system designed for decentralised diagnosis within an hour. As of 31 March 2026, the company discloses that Truenat is patented in more than 100 countries, offers testing for 30 diseases including tuberculosis, COVID, Hepatitis B and C, HIV and HPV across 43 assays, and that it had sold over 12,500 devices in more than 90 countries through subsidiaries including Bigtec, Prognosys and OptraScan.

On financials, the RHP reports restated consolidated revenue from operations of Rs 1,445.69 crore for the financial year ended 31 March 2026, up from Rs 1,020.42 crore in FY2025 and Rs 836.56 crore in FY2024. Restated profit for the year was Rs 164.14 crore in FY2026, against Rs 138.58 crore in FY2025 and Rs 83.54 crore in FY2024. The company discloses that its promoters and promoter group collectively held 46.65% of the paid-up equity share capital on a fully diluted basis as on the date of the RHP. The named promoters are Sriram Natarajan, Dr Chandrasekhar Bhaskaran Nair, Sangeetha Sriram, Shiva Sriram, Sowmya Sriram and Exxora Trading LLP.

The Offer Structure

The offer combines a fresh issue of equity shares aggregating up to Rs 200 crore with an offer for sale of up to 9,166,000 shares of face value Rs 1 each. The total issue size works out to roughly Rs 903.95 crore at the floor of Rs 768 and about Rs 939.70 crore at the cap of Rs 807. The RHP names the selling shareholders, including Exxora Trading LLP (up to 1,811,000 shares), Dr Chandrasekhar Bhaskaran Nair (up to 1,221,000 shares), Gopalkrishna Mangalore Kini (up to 1,125,000 shares) and India Business Excellence Fund III (up to 1,000,000 shares), among others. The lot size is 18 shares, so a single retail lot works out to Rs 14,526 at the upper band. Readers modelling the arithmetic of an allotment can use Oquilia's lumpsum calculator or CAGR calculator; prior coverage sits on the Oquilia news desk.

Per the RHP, the objects of the fresh issue are funding capital expenditure for a research and development facility and Centre of Excellence to be operated by wholly-owned subsidiary Bigtec, capital expenditure on plant, machinery and equipment for the Goa Unit I, Goa Unit II and Visakhapatnam manufacturing units, and general corporate purposes. The company will not receive any proceeds from the offer for sale, which accrue to the selling shareholders. The book-running lead managers are Kotak Mahindra Capital Company, IIFL Capital Services, Jefferies India and Motilal Oswal Investment Advisors, while KFin Technologies is the registrar to the offer.

Risk Factors

The RHP sets out a detailed risk-factors section, and the disclosures on customer and government concentration are prominent. The company discloses that revenue from Indian central and state governments and international aid agencies for public healthcare programmes was 84.56%, 87.83% and 91.60% of its product-sale revenue in FY2026, FY2025 and FY2024 respectively, and that its top 10 customers accounted for 83.26%, 83.62% and 78.54% of product-sale revenue over the same periods. Among the risk factors, the company notes that unfavourable policy changes or reduced funding for such programmes could adversely affect its business.

The RHP also lists that the company derives a portion of its revenues from tuberculosis test kits, and that it depends on continued research and development investment to grow. It discloses that its statutory auditors' reports on the audited consolidated financials for Fiscals 2026, 2025 and 2024 contained certain matters, and that its facilities, R&D unit and registered office are not on land owned by the company. The document further flags under-utilisation of manufacturing capacity and exchange-rate fluctuations on export revenue. These are the company's own disclosures, not an external assessment.

What Happens Next

With the anchor book completed on 7 August and the price band set, the standard mechanics run from here. The three-day subscription window opens on 10 August and closes on 12 August 2026, during which institutional, non-institutional and retail bidders place bids through the book-building process, with applications made through the ASBA and UPI facilities. Exchange bid data is published category-wise through each day of the window.

The basis of allotment is expected to be finalised on 13 August, followed by refunds or unblocking of application amounts and the crediting of shares to demat accounts. The RHP indicates listing on the BSE and NSE on 17 August 2026. Each date is as stated in the offer record and is subject to change; the exchanges publish the final subscription figures and the listing circular on the respective days.

FAQ

What is the price band and lot size?

Per the RHP, the price band is Rs 768 to Rs 807 per equity share of face value Rs 1. The lot size is 18 shares, which works out to a minimum application of Rs 14,526 at the upper end of the band. Bids are placed in multiples of the lot size through the book-building process.

When does the issue open and close?

Per the offer record, the subscription window opens on 10 August 2026 and closes on 12 August 2026. Anchor investors were allotted shares on 7 August. The basis of allotment is expected on 13 August, with listing on the BSE and NSE indicated for 17 August 2026.

What did the anchor allocation involve?

Per the BSE notice dated 7 August 2026, anchor investors were allotted 34,87,717 equity shares at Rs 807 each, aggregating to about Rs 281.46 crore. Anchor allocation is a rule-based process under SEBI regulations in which institutional investors are allotted shares a day before the public issue opens.

How is the basis of allotment decided?

The basis of allotment is finalised by the registrar in consultation with the exchanges after the issue closes, based on the category-wise subscription. Where a category is oversubscribed, retail allotment is made by lottery for the minimum lot and larger categories proportionately, per SEBI's framework.

Where can I read the RHP?

The full red herring prospectus, including the complete risk-factors section, is available on SEBI's website and the exchanges. It is the primary document for the offer, and it carries every figure cited here with the company's own attribution.

Should I apply for this IPO?

Oquilia does not make recommendations. This report is informational and is not investment advice or a recommendation to subscribe. The RHP, including the complete risk-factors section, is available on SEBI's website and the exchanges. Read it directly before making any decision.

This report is based on the red herring prospectus filed with SEBI and the BSE anchor allocation notice. It was surfaced via coverage in The Economic Times.