Molbio Diagnostics IPO to list Monday with up to 20% gain

Molbio Diagnostics shares will debut on the NSE and BSE on Monday, 17 August, after its initial public offering saw strong subscription of over 70 times. Grey market sources indicate a listing premium of 15 to 20 percent over the issue price of Rs 807, with the grey market premium ranging between Rs 125 and Rs 156. The IPO had a price band of Rs 768-807 and raised Rs 200 crore via fresh issue along with an offer for sale of 91.66 lakh shares.

Market experts expect a listing gain of 14-16 percent. Mahesh M Ojha of Kantilal Chhaganlal Securities advised long-term investors to hold but short-term investors may consider partial profit booking. Harshal Dasani of INVasset PMS said beyond listing day, earnings delivery will determine returns. Proceeds from the fresh issue will fund a research facility, capital expenditure for offices and equipment, and general corporate purposes. Kotak Mahindra Capital, IIFL Capital, Jefferies India and Motilal Oswal were lead managers.