Cameroon timber World Bank Group’s International Finance Corporation has returned as an anchor investor in India’s mainboard IPO market after a gap of five years, investing Rs 20 crore in IPO-bound Molbio Diagnostics. The Goa-based point-of-care diagnostics company raised Rs 281 crore from anchor investors on Friday ahead of its public issue, which opens for subscription on August 10 and closes on August 12. IFC, the private-sector investment arm of the World Bank Group, last participated as an anchor investor in an Indian IPO in June 2021, when it invested Rs 10 crore in Dodla Dairy. According to news reports, IFC stayed invested in Dodla Dairy for three years until 2024. The investment marks a notable institutional endorsement for Molbio Diagnostics, which is regarded as Goa’s first unicorn and is backed by Temasek and Motilal Oswal Private Equity. HDFC Mutual Fund led the anchor book with a Rs 35 crore investment across four schemes: HDFC Pharma and Healthcare Fund, HDFC Value Fund, HDFC Innovation Fund, and HDFC MNC Fund.
Ahead of the IPO, Molbio also undertook a secondary sale at Rs 807 per share, which is the upper end of the IPO price band. Also Read: GMPs indicate 15 IPOs opening or listing this week could offer investors up to 37% returns
According to a public announcement issued on August 7, several alternative investment funds and institutional investors picked up shares worth Rs 160 crore through secondary transactions.
The investors included 360 One Equity Opportunity Fund, 360 One Equity Opportunity Fund – Series 4, 3P India Equity Fund 1, Neo Prime Fund, Neo Secondaries Fund, Neo Markets Services Private Limited, Whiteoak Capital India Opportunities Fund, and Motilal Oswal Value Migration Fund Series I. Kotak Mahindra Life Insurance Company and Susquehanna Asia Technology Pty Ltd also participated in the secondary purchase. Among the investors, 360 ONE Asset invested Rs 30 crore. 3P Investment Managers, Neo Alternative Asset Managers, Kotak Mahindra Life Insurance, and Susquehanna International Group invested Rs 25 crore each.
WhiteOak Capital Asset Management put in Rs 20 crore, while Motilal Oswal Asset Management invested Rs 10 crore. The pre-IPO secondary deal points to strong institutional interest in Molbio ahead of its listing. Brokerages recommend subscribing
Molbio’s Rs 940 crore IPO has received positive recommendations from several brokerages. BP Wealth, Swastika Investmart, and Ventura Securities have given the issue a Subscribe rating, while SBI Securities has recommended Subscribe for Long Term. SBI Securities said Molbio showed healthy financial performance between FY24 and FY26, with revenue, EBITDA, and adjusted profit after tax growing at a compound annual growth rate of 31.5%, 17.2%, and 9.7%, respectively.
The brokerage said the IPO valuation, at FY26 price-to-earnings of 56.5 times and EV/EBITDA of 28.5 times, appeared reasonable compared with the company’s growth profile, profitability, return ratios, and position in the diagnostics ecosystem. It said future growth would be driven by assay expansion, rising adoption of molecular diagnostics, international market penetration, and investments in research, development, and manufacturing. Swastika Investmart said Molbio’s valuations are in line with the industry average and below the listed peer average P/E of 64.9 times.
It also noted that the Rs 200 crore fresh issue proceeds are meant for growth capital expenditure rather than debt reduction. IPO opens on August 10
Molbio Diagnostics’ IPO will open on Monday, August 10, and close on Wednesday, August 12. The company plans to use Rs 106 crore from the fresh issue proceeds to fund capital expenditure for setting up infrastructure for an R&D facility, Centre of Excellence, and connected office space.
It will use another Rs 72 crore to buy plant, machinery, and equipment for Goa Unit I, Goa Unit II, and its Visakhapatnam unit. The remaining proceeds will be used for general corporate purposes. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)