Molbio IPO Day 2: GMP Soars to 17% Listing Gains—Is It a Buy?

The Molbio Diagnostics IPO has generated significant interest among investors, reflecting a strong performance as it enters its second day of bidding. As of the first day, the IPO was subscribed 83%, with retail investors showing a robust appetite, having subscribed 77% of the shares allocated to them. The public issue consists of a fresh issue worth Rs 200 crore and an offer for sale (OFS) of Rs 739.70 crore, putting the total expected collection at approximately Rs 939.70 crore at the upper price band of Rs 807. The stock is positioned for a strong debut, underscored by the rising grey market premium which currently stands at 17%, indicating positive sentiment among speculative investors.

The grey market has been a focal point of investor sentiment, with a current premium of Rs 122 per share, suggesting a listing price of around Rs 929. Such indicators can often provide insight into market perceptions and expectations, though they are unofficial and subject to change. Analysts have recommended a subscription based on the attractive valuations compared to industry peers—priced below the average P/E multiple of 64.9 times. This makes the offering appealing to investors looking for entry points into the growing molecular diagnostics sector.

Source: The Economic Times

(Expert Note: This report was prepared by the Wealthova IPO team.)