Molbio Diagnostics Plans IPO in FY25, Targets Rs 24,000 Crore Valuation

Molbio Diagnostics, a Goa-based startup backed by Temasek and Motilal Oswal Private Equity, is gearing up for an initial public offering (IPO) in the fiscal year 2025. The company aims for a valuation between Rs 22,000 crore and Rs 24,000 crore, with plans to raise Rs 2,200 crore to Rs 2,400 crore.

The advisory syndicate for this IPO includes Kotak Mahindra Capital, Motilal Oswal Financial Services, Jefferies, and IIFL Capital. The proposed listing will provide a partial exit window for existing investors, and the promoter group is also likely to dilute part of its stake.

Molbio Diagnostics achieved unicorn status in September 2022 after raising around Rs 680 crore from Temasek and Motilal Oswal Private Equity (MOPE). The company is well-known for its Truenat technology, a portable, battery-operated real-time PCR platform approved by the World Health Organization (WHO) for tuberculosis diagnosis.

Why this matters: Molbio Diagnostics' IPO will have a significant impact on the molecular diagnostics sector, potentially leading to advancements in disease diagnosis and treatment. The successful listing could also pave the way for other startups in the healthcare industry to go public, attracting more investments and driving innovation.

The company is expanding its diagnostic capabilities to include diseases such as hepatitis C, B, HPV, and HIV. It is also developing new point-of-care technologies in haematology, cancer, antimicrobial resistance (AMR), next-generation sequencing (NGS), and syndromic testing.

Financially, Molbio Diagnostics generated a group revenue of Rs 850 crore during FY23-24 and aims to increase this to Rs 1,200 crore in FY24-25. This growth is part of its strategy to strengthen its global presence and launch new products in the Indian market.

In February 2023, Molbio acquired a majority stake in Prognosys Medical Systems, a manufacturer of Digital X-Ray machines, marking its entry into the radiology segment. Bangalore-based Bigtec Labs serves as Molbio's R&D wing, driving innovation in molecular diagnostics.

The IPO is expected to launch in November 2024. This move will not only provide a partial exit for existing investors but also support Molbio's ongoing efforts to enhance its diagnostic technologies and expand its market reach.

Molbio Diagnostics' upcoming IPO represents a significant milestone for the company, reflecting its growth and ambition in the molecular diagnostics sector. By raising substantial funds, the company is set to further innovate and solidify its position in the global market.

Key Takeaways

• Molbio Diagnostics plans IPO in FY2025, targeting ₹22,000-24,000 crore valuation.
• The company aims to raise ₹2,200-2,400 crore through the IPO.
• Molbio Diagnostics achieved unicorn status in 2022 with a ₹680 crore funding.
• The IPO will support expansion of diagnostic capabilities and global presence.
• The listing is expected to launch in November 2024, providing partial exit for investors.