The Rs 940-crore Molbio Diagnostics IPO reached full subscription by its second day, driven by healthy interest from retail and institutional investors. While the stock has seen positive demand in the grey market, investors should weigh the potential listing gains against the company's significant reliance on its tuberculosis testing business.
The Rs 940-crore IPO of Molbio Diagnostics, a point-of-care molecular diagnostics firm, hit full subscription on its second day of bidding. By August 11, 2026, the issue had received bids exceeding the number of shares on offer, signaling steady market appetite for the healthcare company's public debut.
Anchor investors played a significant role in building confidence before the IPO opened. The company successfully raised Rs 281.5 crore from 33 institutional investors, including global heavyweights like Goldman Sachs, BlackRock, and the International Finance Corporation (IFC). Domestic mutual funds, including HDFC and Kotak Mahindra, also participated, reflecting institutional support for the firm's expansion plans.
The public issue consists of a fresh issue of Rs 200 crore and an offer for sale of Rs 739.7 crore. The company plans to use Rs 105.5 crore from the fresh issue to fund research and development through its subsidiary, Bigtec, and allocate Rs 72.2 crore toward purchasing new manufacturing machinery for its facilities in Goa and Visakhapatnam. The remaining capital is intended for general corporate purposes.
While early grey market activity suggests a potential listing premium—currently fluctuating between 14% and 16% over the upper price band of Rs 807—investors should treat these figures as speculative. Grey market premiums are unofficial and do not guarantee actual listing performance or future stock movement.
When evaluating the investment, it is important to look at the business structure. A significant portion of the company's revenue—approximately 68%—is derived from its tuberculosis (TB) testing kits. This heavy reliance on a single disease segment creates a concentration risk, meaning the business could be sensitive to changes in demand or pricing for TB tests specifically. Furthermore, the company has experienced a decline in the prices it realizes for its devices and test kits since the 2023 financial year, a trend that may influence profit margins as the company grows.
The shares are tentatively scheduled to list on the BSE and NSE on August 17, 2026. Going forward, investors may want to monitor the company’s ability to diversify its product portfolio beyond TB testing and how it manages pricing pressures in the increasingly competitive diagnostics market.