Molbio Diagnostics files DRHP with SEBI to raise funds via fresh issue and OFS

Temasek and Motilal Oswal Private Equity-backed Molbio Diagnostics Limited has filed draft red herring prospectus (DRHP) with the markets regulator, the Securities and Exchange Board of India, to raise funds via an initial public offering (IPO).

According to the preliminary papers, the IPO comprises a fresh issuance of equity shares aggregating up to ₹200 crore and an offer-for-sale (OFS) component of up to 1.25 crore shares by existing shareholders.

Under the OFS, V Sciences Investments Pte Ltd, Exxora Trading LLP, India Business Excellence Fund III, Dr Chandrasekhar Bhaskaran Nair and Gopalkrishna Mangalore Kini will offload their stake.

The Goa-based company plans to use ₹99.3 crore from the fresh issue proceeds for establishing infrastructure for a new Research and Development (R&D) facility, a Centre of Excellence and connected office space. Around ₹73.5 crore will be used for the purchase of plant and machinery for its manufacturing units in Visakhapatnam and Goa, while a portion will also be utilised for general corporate purposes.

Molbio Diagnostics, which was founded in 2000, is engaged in point-of-care molecular diagnostics for more than 30 diseases, including COVID-19, tuberculosis, HPV, HIV, and hepatitis B & C.

Its flagship 'Truenat' platform, patented in over 100 countries, is a battery-operated portable PCR platform designed to deliver test results within an hour in resource-limited settings.

It operates five manufacturing plants – two in Goa, two in Bengaluru and one in Visakhapatnam – producing devices, test kits and radiology equipment through its unit 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 firm reported revenue from operations of Rs 1,020 crore, up nearly 22 per cent year-on-year, while profit after tax stood at Rs 138.5 crore, he said.

Molbio Diagnostics IPO: Financials

IIFL Capital Services, Kotak Mahindra Capital, Jefferies India and Motilal Oswal Investment Advisors are the IPO's book-running lead managers, while KFin Technologies is the registrar.