Molbio Diagnostics files for IPO with fresh issue of Rs 200 Cr

Molbio Diagnostics Ltd., the Goa-based molecular diagnostics company known for its Truenat testing platform, has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India to launch its initial public offering.

The IPO comprises a fresh issue of equity shares worth up to Rs 200 crore and an offer for sale (OFS) of up to 12.56 million shares by existing investors and promoters.

The company will use the proceeds from the fresh issue to bolster growth. At the same time, the OFS will provide a partial exit to early investors, including venture capital funds and certain members of the promoter group.

Among the selling shareholders are Exxora Trading LLP, Dr Chandrasekhar Bhaskaran Nair, V Sciences Investments Pte. Ltd., and India Business Excellence Fund III, alongside other long-term shareholders.

The weighted average cost of acquisition for these investors ranges widely, from less than a rupee per share for early promoters to above Rs 670 per share for institutional investors, reflecting the company’s rapid value appreciation in recent years.

Founded in 2000, Molbio is credited with introducing point-of-care molecular testing to India through its Truenat platform, which has been endorsed by the World Health Organisation (WHO) for tuberculosis diagnosis and is now utilised for multiple infectious diseases, including COVID-19.

The company has six subsidiaries—including Bigtec Pvt. Ltd. and Prognosys Medical Systems Pvt. Ltd.—that cover diagnostics, medical systems, and related technologies. Its operations span manufacturing facilities in Goa, Bengaluru, and Visakhapatnam, with international distribution supported through global health programmes.

Molbio’s promoters include Sriram Natarajan, Dr Nair, Sangeetha Sriram, Shiva Sriram, and Sowmya Sriram, along with Exxora Trading LLP.

The company is led by Natarajan as managing director, supported by Dr Nair on the scientific side, with independent directors such as Dr K. VijayRaghavan, former Principal Scientific Adviser to the Government of India, and Dr Balram Bhargava, former head of the Indian Council of Medical Research, adding policy heft to the board.

The IPO will be managed by a syndicate of lead bankers, such as Kotak Mahindra Capital, IIFL Capital Services, Jefferies India, and Motilal Oswal Investment Advisors, with KFin Technologies acting as registrar. The shares are proposed to be listed on both the NSE and BSE.

As with all IPO filings, the company has flagged risks. Molbio remains heavily dependent on the Truenat platform for revenue and relies on government tenders and international aid agencies for large orders, making its sales vulnerable to policy changes and procurement cycles.

It also faces pending tax and regulatory disputes, disclosed as contingent liabilities in its financial statements, which, if realised, could hurt its financial condition.

This is Molbio’s first public issue. Pricing details, including the price band and lot size, will be announced closer to the offer date. For now, the company is positioning itself as one of India’s few globally recognised molecular diagnostics firms looking to tap the capital markets for its next phase of growth.

Financials

Molbio’s financials show a profitable, but uneven growth curve, underscoring both its strength and dependence on institutional orders. Revenue from operations stood at Rs 1,258.6 crore in FY23, dipped to Rs 1,148.9 crore in FY24, and rebounded to Rs 1,272.7 crore in FY25, according to restated consolidated statements filed with regulators.

Profitability has been consistently strong, although not immune to revenue swings. The company posted a profit after tax of Rs 340.5 crore in FY23, falling to Rs 280.4 crore in FY24, before recovering to Rs 311.7 crore in FY25.

Operating margins remain robust at around 40%, supported by a premium pricing of its Truenat platform and consumables.

Molbio’s finances highlight the risks that accompany its strengths. Revenues are concentrated in a single product family and a handful of large institutional buyers, and its receivables are heavily dependent on timely government payments.