Molbio Diagnostics Ltd IPO

Status: Upcoming

Overview

IPO date

10 Aug 2026 to 12 Aug 2026

Face value

₹ 1 per share

Price

₹ 768 to ₹807 per share

Issue Size

11,644,314 shares
(aggregating up to ₹ 939.7 Cr)

Allotment Date

13 Aug 2026

Listing at

NSE

Issue type

Book Building

Sector

Healthcare

Initial public offering of up to 11,644,314 equity shares of face value of Re. 1 each of the company ("Equity Shares") for cash at a price of Rs. 807 per equity share (including a share premium of Rs. 806 per equity share) ("Offer Price") aggregating up to Rs. 939.70 Crores ("Offer"). The offer comprises a fresh issue of up to 2,478,314 equity shares of face value of Re. 1 each aggregating up to Rs. 200.00 Crores ("Fresh Issue") and an offer for sale of up to 9,166,000 equity shares of face value of Re. 1 each ("Offered Shares") aggregating up to Rs. 739.70 Crores, comprising up to 1,811,000 equity shares of face value of Re. 1 each aggregating up to Rs. 146.15 Crores by Exxora Trading LLP, up to 1,221,000 equity shares of face value of Re. 1 each aggregating up to Rs. 98.53 Crores by Chandrasekhar Bhaskaran Nair (Jointly Held with Anita Angela Chandrasekhar), up to 48,000 equity shares of face value of Re. 1 each aggregating up to Rs. 3.87 Crores by Abdul Qadir Mohamed Theruvath, up to 193,000 equity shares of face value of Re. 1 each aggregating up to Rs. 15.58 Crores by Chewbacca Services Limited, up to 902,000 equity shares of face value of Re. 1 each aggregating up to Rs. 72.79 Crores by J. Guru Dutt (Jointly Held with Sandhya Guru Dutt), up to 1,125,000 equity shares of face value of Re. 1 each aggregating up to Rs. 90.79 Crores by Gopalkrishna Mangalore Kini, up to 902,000 equity shares of face value of Re. 1 each aggregating up to Rs. 72.79 Crores by Gopalakrishna Sampathgiri (Jointly Held with Jayshree Sampathgiri), up to 1,000,000 equity shares of face value of Re. 1 each aggregating up to Rs. 80.7 Crores by India Business Excellence Fund III, up to 17,000 equity shares of face value of Re. 1 each aggregating up to Rs. 1.37 Crores by M Ganesh Kamath, up to 248,000 equity shares of face value of Re. 1 each aggregating up to Rs. 20.01 Crores by M.A. Rohit, up to 202,000 equity shares of face value of Re. 1 each aggregating up to Rs. 16.30 Crores by M.A. Sharath, up to 451,000 equity shares of face value of Re. 1 each aggregating up to Rs. 36.40 Crores by M.A. Usha Rani, up to 452,000 equity shares of face value of Re. 1 each aggregating up to Rs. 36.48 Crores by Sangeetha M Kini, up to 97,000 equity shares of face value of Re. 1/- each aggregating up to Rs. 7.83 Crores by Shaheeda Abdul Kader, up to 226,000 equity shares of face value of Re. 1 each aggregating up to Rs. 18.24 Crores by Shruti G Kini, up to 193,000 equity shares of face value of Re. 1 each aggregating up to Rs. 15.58 Crores by Sujay Limited, up to 78,000 equity shares of face value of Re. 1 each aggregating up to Rs. 6.29 Crores by V Sciences Investments Pte. Ltd., and up to 78,000 equity shares of face value of Re. 1/- each aggregating up to Rs. [*] crores by Vivek Devaraj (together, the "Selling Shareholders", and such offer for sale of equity shares by the selling shareholders, the "Offer for Sale"). This offer includes a reservation of up to 18,587 equity shares of face value of Re. 1/- each aggregating up to Rs. 1.5 (constituting up to [*]% of the post-offer paid-up equity share capital) for subscription by eligible employees (the "Employee Reservation Portion"). The company in consultation with the brlms, may offer a discount of Rs 76 per equity share of face value of Re. 1 each, to eligible employees bidding in the employee reservation portion ("Employee Discount"), subject to necessary approvals as may be required the offer less the employee reservation portion is hereinafter referred to as the "Net Offer". The offer and the net offer would constitute [*]% and [*]%, respectively, of the company post-offer paid-up equity share capital. Price Band: Rs. 768 to Rs. 807 per equity share of face value of Rs. 1 each. The floor price and the cap price are 768 times and 807 times the face value of the equity shares, respectively. Bids can be made for a minimum of 18 equity shares of face value of Rs. 1 each and in multiples of 18 equity shares of face value of Rs. 1 each thereafter. A discount of Rs. 76.00 per equity share is being offered to eligible employees bidding in the employee reservation portion. The price band and the minimum bid lot will be decided by the company.

Molbio Diagnostics Limited was originally incorporated as Molbio Diagnostics Private Limited' at Panaji, as a private company dated October 20, 2000. Thereafter, Company was converted from a private limited company to a public limited company, and the name of Company was changed to Molbio Diagnostics Limited, and a fresh certificate of incorporation dated January 16, 2025 was issued to Company by the RoC. Company is innovative point-of-care (POC) diagnostics company focused on expanding access to accurate, rapid and cost-effective healthcare technologies to diagnose infectious and non-communicable diseases. The Company entered into a joint venture agreement in August, 2011 with Bigtec Innovations Private Limited and Bigtec Private Limited, which started operations in 2000. Bigtec Innovations Private Limited got merged with the Company in 2015. It has developed Truenat' platform in 2015, which is a novel POC polymerase chain reaction (PCR) platform that can operate in resource limited settings since its battery operated, facilitating decentralized diagnosis within an hour. The Company works five manufacturing facilities in India, of which two are in Goa, one in Bengaluru, Karnataka and one in Visakhapatnam, Andhra Pradesh. Company is mainly engaged in the business of manufacturing chip based diagnostic devices, chips and reagents, X-ray equipment's, single / dual detector solutions, developing diagnostic devices, performing tests in the bio-sensing domain, digital pathology, etc. In addition to this, it offer products globally to public health programs, diagnostic laboratories, and private and public hospitals. In February 2023, Company acquired 65.47% of the equity share capital of Prognosys Medical Systems Pvt Ltd to venture into radiology equipment. Further, in October 2024, Company acquired a 19.68 % equity stake in OptraScan Inc., a USA based company, to diversify to digital pathology scanners. Company is planning to raise Rs 200 Cr fresh issue equity shares by way of initial public offer and by issuing 12,556,000 equity shares of Re 1 each through offer for sale.

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T&C*

Strengths vs Risks of Molbio Diagnostics Ltd

Know the pros & cons

Strengths

We are well placed to address unmet demand in a large and growing molecular diagnostic market with gaining credence of point-of-care testing.
Innovative, R&D focussed business.
We have developed and commercialized a novel portable multi-disease point-of-care molecular diagnostics platform.
We have a scalable business model with strong entry barriers, high proportion of recurring revenues and a growing suite of tests.
Our strategic collaborations and acquisitions enhance our capabilities and offerings.
We have a management team with deep domain expertise and track record of delivering strong financial performance.

Risks

We derive a portion of our revenues from the sale of our products to the Indian central and state governments, and international aid agencies for their public healthcare programs. Our revenue from such government and international aid agencies was 84.56%, 87.83% and 91.60% of our revenue from contracts with customers - sale of products - finished goods in Fiscals 2026, 2025 and 2024, respectively. Any unfavourable policy changes by these agencies or a decrease in funding for public healthcare programs may impact the sale of our products and adversely affect our business, financial condition, results of operations and cash flows. Further, our revenue from the top 10 customers was 83.26%, 83.62% and 78.54% of our revenue from contracts with customers - sale of products - finished goods in Fiscals 2026, 2025 and 2024, respectively. The loss of any of these customers or a decline in demand for our products from them could also have an adverse effect on our business, financial condition, results of operations and cash flows.
We derive a portion of our revenues from the sale of diagnostic test kits for tuberculosis ("TB"). Our revenue from the sale of test kits for TB was 70.20%, 69.11% and 62.40% of our revenue from contracts with customers - sale of products - finished goods in the Fiscals 2026, 2025 and 2024, respectively. Any decline in the demand for such test kits may have an adverse effect on our business, financial condition, results of operation and cash flows.
We have invested and intend to continue to invest in research and development ("R&D") efforts to grow our menu of tests. We cannot assure you that our R&D efforts will result in the successful development and obtaining of government approvals for new tests, which could adversely affect our business, results of operations, and cash flows.
Our Subsidiaries, Prognosys Medical Systems Private Limited, Prognosys Healthcare (India) Private Limited and OptraScan INC, have incurred losses in the past and may incur losses in the future which could have an adverse effect on our business, financial condition, results of operations and cash flows. Further, our Company (on a consolidated basis) and some of our Subsidiaries have experienced negative cash flows from operating activities in the past. Any such negative cash flows in the future could affect our business, results of operations, financial condition and cash flows.
Our Promoters (certain of whom are also Directors) hold Equity Shares in our Company and may be interested in our Company's performance in addition to any remuneration and reimbursement of expenses payable to them.
If we are unable to patent new processes and protect our proprietary information or other intellectual property, our business may be adversely affected.
Our Statutory Auditors' audit reports on our audited consolidated financial statements for Fiscals 2026, 2025 and 2024 includes emphasis of matter paragraph, modifications for certain matters specified in the report on other legal and regulatory requirements and certain qualifications under the reporting requirements under the Companies (Auditor's Report) Order, 2020 and Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended). We cannot assure you that auditors' reports for any future fiscal periods will not contain such emphasis of matter, modifications, qualifications and observations.
We intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements towards (i) the setting up of infrastructure for a research and development facility and Center of Excellence which will be operated by our wholly-owned Subsidiary, Bigtec, and connected office space for our Company, Subsidiaries and Associate, and (ii) purchase of certain plant, machinery and other equipment for Goa Unit I, Goa Unit II and Visakhapatnam Unit. Our inability to successfully undertake such capital expenditure within the estimated cost could have a material adverse effect on our business, cash flows, operations, prospects or financial results.
Any product liability claims or regulatory actions or imposition of liquidated damages on account of our failure to meet the contractual obligations, could have an adverse effect on our business, results of operations, financial condition and cash flows.
There have been certain instances of delays in payment of statutory dues by us in the past. Any delay in payment of statutory dues by us in future, may result in the imposition of penalties and in turn may have an adverse effect on our business, financial condition, results of operation and cash flows.
Under-utilization of our manufacturing capacities over extended periods, or significant underutilization in the short term could increase our cost of production and our operating costs and adversely impact our business, growth prospects and future financial performance.
Our operations are subject to extensive government regulation and if we fail to obtain, maintain or renew our statutory and regulatory licenses, permits and approvals required to operate our business, results of operations and cash flows may be adversely affected.
Our ability to develop or adopt new technology to respond to market requirements poses a challenge in our business. The cost of developing or implementing new technologies for our operations could be significant and could adversely affect our business, results of operations, cash flows and financial condition.
Our manufacturing facilities, R&D unit and Registered and Corporate Office are not located on land owned by us and we have only leasehold rights. In the event we lose or are unable to renew such leasehold rights, our business, results of operations, financial condition and cash flows may be adversely affected.
Our Statutory Auditor's reports on internal financial controls issued on our audited consolidated financial statements for Fiscal 2024 contain a disclaimer of opinion relating to the Statutory Auditors' inability to obtain appropriate audit evidence to provide a basis for opinion on adequate internal financial controls.
Our inability to accurately forecast demand for our products and manage our inventory may have an adverse effect on our business, financial condition, results of operations and cash flows.
We have capital expenditure requirements and may require additional capital and financing in the future and our operations could be curtailed if we are unable to obtain the required additional capital and financing when needed.
We export our products to various countries and our revenue from customers outside India as per Ind AS 108 "Operating Segments" represented 9.62%, 19.32% and 9.83% of our revenue from operations in the Fiscals 2026, 2025 and 2024, respectively. Any adverse events affecting these countries could have an adverse impact on our business, financial condition, results of operation and cash flows.
We depend on our Promoters, Senior Management, Key Managerial Personnel and other employees (including qualified and skilled personnel with technical expertise), and if we are unable to recruit and retain such personnel, our business, results of operations, financial condition and cash flows may be adversely affected.
We incur royalty and commission expenses in the ordinary course of our business operations. Any increase in these payments could adversely impact our business, results of operations, financial condition and cash flows.
Internal or external fraud or misconduct by our employees could adversely affect our reputation, our results of operations, financial condition and cash flows.
Exchange rate fluctuations may adversely affect our business, financial conditions, cash flows and results of operations.
Some of our corporate records, including forms filed with the Registrar of Companies, are not traceable.
We are dependent on third parties for the transportation of our products to distributors or directly to end customers. Any failure by or loss of a third-party transport service provider could result in delays and increased costs, which may adversely affect our business, financial condition, results of operations and cash flows.
Our Company, Subsidiaries, Promoters and Directors are involved in certain legal and regulatory proceedings including certain income tax surveys carried out by the income tax authorities. Any adverse decision in such proceedings may have an adverse effect on our business, financial condition, cash flows and results of operations.
Our sales cycle and sales demand are variable, which makes it difficult for us to forecast our business, results of operations, financial condition and cash flows.
We depend on a few suppliers for the supply of some of our raw materials (our purchase of raw materials from top 10 suppliers accounted for 58.52%, 58.21% and 58.52% of purchases of raw materials and components consumed in Fiscal 2026, 2025 and 2024, respectively) and any disruption in the supply or increase in the prices of raw materials could adversely affect our business, financial condition, results of operations and cash flows.
The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the proposed utilization of our Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.
We rely on our manufacturing and R&D facilities and any unscheduled or prolonged disruption or quality control issues at such facilities could adversely affect our business, financial condition, results of operations, and cash flows.
Our business and prospects may be adversely affected if we are unable to maintain and grow our brand image.
If we inadvertently infringe on the patents of others, we may be subjected to legal action and our business and reputation may be adversely affected.
There have, in the past, been instances of non-compliance by our Company and Bigtec under Indian company laws requiring our Company to initiate compounding or adjudication proceedings. We cannot assure you that such lapses will not occur in the future, or that we will be able to rectify or mitigate such lapses in a timely manner or at all or that no legal proceedings or regulatory actions will be initiated against our Company in the future in relation to these matters, which may impact our financial condition and reputation.
We have entered into related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest. Further, we may be required to reimburse expenses incurred by directors and other officials in connection with official business activities. Any perception of inadequacy in documentation or non-compliance with applicable laws and governance standards could lead to regulatory scrutiny or stakeholder concerns.
Our business faces certain key challenges and threats that could adversely impact our operations and growth prospects.
If our products do not perform as expected or have any defects, the market acceptance of our products may decline, which in turn could have an adverse effect on our business, results of operations, financial condition, cash flows and reputation.
We rely on distributors to supply our products to our customers, particularly government sector. Failure to establish and maintain relationships with distributors would adversely affect our business, financial condition and results of operations.
We have recently invested in OptraScan INC and Chayagraphics (India) Private Limited, and acquired controlling stake in Prognosys Medical Systems Private Limited and Prognosys Healthcare (India) Private Limited and any failure to realize the anticipated benefits of these acquisitions or any future acquisitions that we may undertake may have an adverse effect on our business, results of operations, financial condition and cash flows.
We have availed certain unsecured loans which are repayable on demand. As of May 31, 2026, we had outstanding unsecured loans of Rs. 392.43 million. Any demand from the borrowers for repayment of such unsecured loans may affect our business, results of operations, financial condition and cash flows.
Our inability to meet our obligations, including financial and other covenants under our debt financing arrangements could adversely affect our business, results of operations and cash flows.
We have significant working capital requirements. If we experience insufficient cash flows to fund our working capital requirements and if we are not able to provide collateral to obtain letters of credit and bank guarantees in sufficient quantities, there may be an adverse effect on our business, financial condition, results of operations and cash flows.
Our Company proposes to utilise an amount of up to Rs. 1,055.35 million from the Net Proceeds for funding the capital expenditure towards the setting up of the necessary infrastructure to house our research and development facility, and proposed Center of Excellence ("COE") which will be operated by our wholly-owned Subsidiary, Bigtec and connected office spaces for our Company, Subsidiaries and Associate. This infrastructure will not directly augment our manufacturing capabilities or cash-flow and may lead to an increase in operating expenses in the short term.
Our inability to effectively manage our growth or implement our growth strategies may have an adverse effect on our business, results of operations, financial condition and cash flows.
We are exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact our business, financial condition, cash flows and results of operations.
Majority of our Directors are not directors of listed companies and hence lack of such adequate experience to address complexities associated with listed companies, could have an adverse impact on our business and operations.
Any disruption to the steady and regular supply of workforce for our operations, including due to strikes, work stoppages or increased wage demands by our workforce or any other kind of disputes with our workforce or our inability to control the composition and cost of our workforce could adversely affect our business, cash flows and results of operations.
Our insurance coverage may not be adequate or we may incur uninsured losses or losses in excess of our insurance coverage which may impact on our financial condition, cash flows and results in operations.
We have certain contingent liabilities that have been disclosed in our financial statements, which if they materialize, may adversely affect our business, results of operations, cash flows and financial condition.
We intend to utilise a portion of the Net Proceeds towards the purchase of certain plant, machinery and other equipment for Goa Unit I, Goa Unit II and Visakhapatnam Unit, and we intend to import a majority of this plant, machinery and other equipment, which may be subject to import duties and currency exchange fluctuations.
We intend to utilise a portion of the Net Proceeds for funding our capital expenditure requirements, which may be subject to unanticipated delays in implementation.
Technology failures could disrupt our operations and adversely affect our business operations and financial performance.
Cyber threats and non-compliance with and changes in privacy laws and regulations may have an adverse effect on our business, results of operations and financial condition and cash flows.
Information relating to our annual installed capacity and the historical capacity utilization of our products included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.
Our Promoters and members of our Promoter Group will continue to hold a significant equity stake in our Company after the Offer and their interests may differ from those of the other shareholders.
Certain sections of this Red Herring Prospectus disclose information from the 1Lattice Report which is a paid report and commissioned and paid for by us exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
Certain non-GAAP financial measures and certain other statistical information relating to our operations and financial performance like EBITDA, EBITDA Margin, EBITDA Pre R&D, EBITDA Pre R&D Margin, Restated Profit / (loss) for the year Margin, Return on Net worth, Return on Equity, EBIT, Capital Employed, Return on Capital Employed and Net Asset Value per equity share have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
The average cost of acquisition of Equity Shares for our Selling Shareholders may be lower than the Offer Price.

Molbio Diagnostics Ltd Peer Comparison

Understand the company’s industry standing

Molbio Diagnostics Ltd

Poly Medicure Limited

Dr. Lal Pathlabs Limited

Face Value

Standalone / Consolidated

Consolidated

Total Income Rs. Cr.

1445.687

1875.259

2762.911

EPS-Basis

14.77

31.79

30.24

EPS-Diluted

14.77

31.75

30.2

NAV Per Share

101.51

306.45

145

P/E-Basic EPS

---

52.61

62.20

P/E-Diluted EPS

---

RONW(%)

14.55

10.37

20.78

Latest NAV Period

---

Latest NAV

---

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Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).

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The IPO opens on 10 Aug 2026 & closes on 12 Aug 2026.

Molbio Diagnostics Ltd IPO will close on 12 Aug 2026.

We are well placed to address unmet demand in a large and growing molecular diagnostic market with gaining credence of point-of-care testing.
Innovative, R&D focussed business.
We have developed and commercialized a novel portable multi-disease point-of-care molecular diagnostics platform.
We have a scalable business model with strong entry barriers, high proportion of recurring revenues and a growing suite of tests.
Our strategic collaborations and acquisitions enhance our capabilities and offerings.
We have a management team with deep domain expertise and track record of delivering strong financial performance.

S.No	Promoters Name	Pre Issue Shares	Pre Issue Percentage	Post Issue Shares	Post Issue Percentage
1	Chandrasekhar Bhaskaran Nair	6109850	5.42	4888850	3.93
2	Exxora Trading LLP	44504951	39.47	42693951	34.32

We derive a portion of our revenues from the sale of our products to the Indian central and state governments, and international aid agencies for their public healthcare programs. Our revenue from such government and international aid agencies was 84.56%, 87.83% and 91.60% of our revenue from contracts with customers - sale of products - finished goods in Fiscals 2026, 2025 and 2024, respectively. Any unfavourable policy changes by these agencies or a decrease in funding for public healthcare programs may impact the sale of our products and adversely affect our business, financial condition, results of operations and cash flows. Further, our revenue from the top 10 customers was 83.26%, 83.62% and 78.54% of our revenue from contracts with customers - sale of products - finished goods in Fiscals 2026, 2025 and 2024, respectively. The loss of any of these customers or a decline in demand for our products from them could also have an adverse effect on our business, financial condition, results of operations and cash flows.
We derive a portion of our revenues from the sale of diagnostic test kits for tuberculosis ("TB"). Our revenue from the sale of test kits for TB was 70.20%, 69.11% and 62.40% of our revenue from contracts with customers - sale of products - finished goods in the Fiscals 2026, 2025 and 2024, respectively. Any decline in the demand for such test kits may have an adverse effect on our business, financial condition, results of operation and cash flows.
We have invested and intend to continue to invest in research and development ("R&D") efforts to grow our menu of tests. We cannot assure you that our R&D efforts will result in the successful development and obtaining of government approvals for new tests, which could adversely affect our business, results of operations, and cash flows.
Our Subsidiaries, Prognosys Medical Systems Private Limited, Prognosys Healthcare (India) Private Limited and OptraScan INC, have incurred losses in the past and may incur losses in the future which could have an adverse effect on our business, financial condition, results of operations and cash flows. Further, our Company (on a consolidated basis) and some of our Subsidiaries have experienced negative cash flows from operating activities in the past. Any such negative cash flows in the future could affect our business, results of operations, financial condition and cash flows.
Our Promoters (certain of whom are also Directors) hold Equity Shares in our Company and may be interested in our Company's performance in addition to any remuneration and reimbursement of expenses payable to them.
If we are unable to patent new processes and protect our proprietary information or other intellectual property, our business may be adversely affected.
Our Statutory Auditors' audit reports on our audited consolidated financial statements for Fiscals 2026, 2025 and 2024 includes emphasis of matter paragraph, modifications for certain matters specified in the report on other legal and regulatory requirements and certain qualifications under the reporting requirements under the Companies (Auditor's Report) Order, 2020 and Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014 (as amended). We cannot assure you that auditors' reports for any future fiscal periods will not contain such emphasis of matter, modifications, qualifications and observations.
We intend to utilize a portion of the Net Proceeds for funding our capital expenditure requirements towards (i) the setting up of infrastructure for a research and development facility and Center of Excellence which will be operated by our wholly-owned Subsidiary, Bigtec, and connected office space for our Company, Subsidiaries and Associate, and (ii) purchase of certain plant, machinery and other equipment for Goa Unit I, Goa Unit II and Visakhapatnam Unit. Our inability to successfully undertake such capital expenditure within the estimated cost could have a material adverse effect on our business, cash flows, operations, prospects or financial results.
Any product liability claims or regulatory actions or imposition of liquidated damages on account of our failure to meet the contractual obligations, could have an adverse effect on our business, results of operations, financial condition and cash flows.
There have been certain instances of delays in payment of statutory dues by us in the past. Any delay in payment of statutory dues by us in future, may result in the imposition of penalties and in turn may have an adverse effect on our business, financial condition, results of operation and cash flows.
Under-utilization of our manufacturing capacities over extended periods, or significant underutilization in the short term could increase our cost of production and our operating costs and adversely impact our business, growth prospects and future financial performance.
Our operations are subject to extensive government regulation and if we fail to obtain, maintain or renew our statutory and regulatory licenses, permits and approvals required to operate our business, results of operations and cash flows may be adversely affected.
Our ability to develop or adopt new technology to respond to market requirements poses a challenge in our business. The cost of developing or implementing new technologies for our operations could be significant and could adversely affect our business, results of operations, cash flows and financial condition.
Our manufacturing facilities, R&D unit and Registered and Corporate Office are not located on land owned by us and we have only leasehold rights. In the event we lose or are unable to renew such leasehold rights, our business, results of operations, financial condition and cash flows may be adversely affected.
Our Statutory Auditor's reports on internal financial controls issued on our audited consolidated financial statements for Fiscal 2024 contain a disclaimer of opinion relating to the Statutory Auditors' inability to obtain appropriate audit evidence to provide a basis for opinion on adequate internal financial controls.
Our inability to accurately forecast demand for our products and manage our inventory may have an adverse effect on our business, financial condition, results of operations and cash flows.
We have capital expenditure requirements and may require additional capital and financing in the future and our operations could be curtailed if we are unable to obtain the required additional capital and financing when needed.
We export our products to various countries and our revenue from customers outside India as per Ind AS 108 "Operating Segments" represented 9.62%, 19.32% and 9.83% of our revenue from operations in the Fiscals 2026, 2025 and 2024, respectively. Any adverse events affecting these countries could have an adverse impact on our business, financial condition, results of operation and cash flows.
We depend on our Promoters, Senior Management, Key Managerial Personnel and other employees (including qualified and skilled personnel with technical expertise), and if we are unable to recruit and retain such personnel, our business, results of operations, financial condition and cash flows may be adversely affected.
We incur royalty and commission expenses in the ordinary course of our business operations. Any increase in these payments could adversely impact our business, results of operations, financial condition and cash flows.
Internal or external fraud or misconduct by our employees could adversely affect our reputation, our results of operations, financial condition and cash flows.
Exchange rate fluctuations may adversely affect our business, financial conditions, cash flows and results of operations.
Some of our corporate records, including forms filed with the Registrar of Companies, are not traceable.
We are dependent on third parties for the transportation of our products to distributors or directly to end customers. Any failure by or loss of a third-party transport service provider could result in delays and increased costs, which may adversely affect our business, financial condition, results of operations and cash flows.
Our Company, Subsidiaries, Promoters and Directors are involved in certain legal and regulatory proceedings including certain income tax surveys carried out by the income tax authorities. Any adverse decision in such proceedings may have an adverse effect on our business, financial condition, cash flows and results of operations.
Our sales cycle and sales demand are variable, which makes it difficult for us to forecast our business, results of operations, financial condition and cash flows.
We depend on a few suppliers for the supply of some of our raw materials (our purchase of raw materials from top 10 suppliers accounted for 58.52%, 58.21% and 58.52% of purchases of raw materials and components consumed in Fiscal 2026, 2025 and 2024, respectively) and any disruption in the supply or increase in the prices of raw materials could adversely affect our business, financial condition, results of operations and cash flows.
The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the proposed utilization of our Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.
We rely on our manufacturing and R&D facilities and any unscheduled or prolonged disruption or quality control issues at such facilities could adversely affect our business, financial condition, results of operations, and cash flows.
Our business and prospects may be adversely affected if we are unable to maintain and grow our brand image.
If we inadvertently infringe on the patents of others, we may be subjected to legal action and our business and reputation may be adversely affected.
There have, in the past, been instances of non-compliance by our Company and Bigtec under Indian company laws requiring our Company to initiate compounding or adjudication proceedings. We cannot assure you that such lapses will not occur in the future, or that we will be able to rectify or mitigate such lapses in a timely manner or at all or that no legal proceedings or regulatory actions will be initiated against our Company in the future in relation to these matters, which may impact our financial condition and reputation.
We have entered into related party transactions in the past and may continue to do so in the future, which may potentially involve conflicts of interest. Further, we may be required to reimburse expenses incurred by directors and other officials in connection with official business activities. Any perception of inadequacy in documentation or non-compliance with applicable laws and governance standards could lead to regulatory scrutiny or stakeholder concerns.
Our business faces certain key challenges and threats that could adversely impact our operations and growth prospects.
If our products do not perform as expected or have any defects, the market acceptance of our products may decline, which in turn could have an adverse effect on our business, results of operations, financial condition, cash flows and reputation.
We rely on distributors to supply our products to our customers, particularly government sector. Failure to establish and maintain relationships with distributors would adversely affect our business, financial condition and results of operations.
We have recently invested in OptraScan INC and Chayagraphics (India) Private Limited, and acquired controlling stake in Prognosys Medical Systems Private Limited and Prognosys Healthcare (India) Private Limited and any failure to realize the anticipated benefits of these acquisitions or any future acquisitions that we may undertake may have an adverse effect on our business, results of operations, financial condition and cash flows.
We have availed certain unsecured loans which are repayable on demand. As of May 31, 2026, we had outstanding unsecured loans of Rs. 392.43 million. Any demand from the borrowers for repayment of such unsecured loans may affect our business, results of operations, financial condition and cash flows.
Our inability to meet our obligations, including financial and other covenants under our debt financing arrangements could adversely affect our business, results of operations and cash flows.
We have significant working capital requirements. If we experience insufficient cash flows to fund our working capital requirements and if we are not able to provide collateral to obtain letters of credit and bank guarantees in sufficient quantities, there may be an adverse effect on our business, financial condition, results of operations and cash flows.
Our Company proposes to utilise an amount of up to Rs. 1,055.35 million from the Net Proceeds for funding the capital expenditure towards the setting up of the necessary infrastructure to house our research and development facility, and proposed Center of Excellence ("COE") which will be operated by our wholly-owned Subsidiary, Bigtec and connected office spaces for our Company, Subsidiaries and Associate. This infrastructure will not directly augment our manufacturing capabilities or cash-flow and may lead to an increase in operating expenses in the short term.
Our inability to effectively manage our growth or implement our growth strategies may have an adverse effect on our business, results of operations, financial condition and cash flows.
We are exposed to counterparty credit risk and any delay in receiving payments or non-receipt of payments may adversely impact our business, financial condition, cash flows and results of operations.
Majority of our Directors are not directors of listed companies and hence lack of such adequate experience to address complexities associated with listed companies, could have an adverse impact on our business and operations.
Any disruption to the steady and regular supply of workforce for our operations, including due to strikes, work stoppages or increased wage demands by our workforce or any other kind of disputes with our workforce or our inability to control the composition and cost of our workforce could adversely affect our business, cash flows and results of operations.
Our insurance coverage may not be adequate or we may incur uninsured losses or losses in excess of our insurance coverage which may impact on our financial condition, cash flows and results in operations.
We have certain contingent liabilities that have been disclosed in our financial statements, which if they materialize, may adversely affect our business, results of operations, cash flows and financial condition.
We intend to utilise a portion of the Net Proceeds towards the purchase of certain plant, machinery and other equipment for Goa Unit I, Goa Unit II and Visakhapatnam Unit, and we intend to import a majority of this plant, machinery and other equipment, which may be subject to import duties and currency exchange fluctuations.
We intend to utilise a portion of the Net Proceeds for funding our capital expenditure requirements, which may be subject to unanticipated delays in implementation.
Technology failures could disrupt our operations and adversely affect our business operations and financial performance.
Cyber threats and non-compliance with and changes in privacy laws and regulations may have an adverse effect on our business, results of operations and financial condition and cash flows.
Information relating to our annual installed capacity and the historical capacity utilization of our products included in this Red Herring Prospectus is based on various assumptions and estimates and future production and capacity utilization may vary.
Our Promoters and members of our Promoter Group will continue to hold a significant equity stake in our Company after the Offer and their interests may differ from those of the other shareholders.
Certain sections of this Red Herring Prospectus disclose information from the 1Lattice Report which is a paid report and commissioned and paid for by us exclusively in connection with the Offer and any reliance on such information for making an investment decision in the Offer is subject to inherent risks.
Certain non-GAAP financial measures and certain other statistical information relating to our operations and financial performance like EBITDA, EBITDA Margin, EBITDA Pre R&D, EBITDA Pre R&D Margin, Restated Profit / (loss) for the year Margin, Return on Net worth, Return on Equity, EBIT, Capital Employed, Return on Capital Employed and Net Asset Value per equity share have been included in this Red Herring Prospectus. These non-GAAP financial measures are not measures of operating performance or liquidity defined by Ind AS and may not be comparable.
The average cost of acquisition of Equity Shares for our Selling Shareholders may be lower than the Offer Price.

The Issue type of Molbio Diagnostics Ltd is Book Building.

The minimum application for shares of Molbio Diagnostics Ltd is 18.

The total shares issue of Molbio Diagnostics Ltd is 11644314.

Molbio Diagnostics Ltd IPO

Objectives of Molbio Diagnostics Ltd IPO