Gurugram-based pathology and radiology testing services chain Modern Diagnostic and Research Centre's Initial Public Offering (IPO) has garnered healthy demand from investors, subscribing 5.5 times on December 31, the first day of bidding.
The company launched IPO with the aim to raise nearly Rs 37 crore by issuing fresh 40.99 lakh shares at the upper end of price band of Rs 85-90 per share.
Investors subscribed for 1.61 crore equity shares against the offer size of 29.37 lakh shares via 2,948 applications. All categories of investors participated in the offer with non-institutional investors leading the charge with 6.97 times subscription, followed by retail and qualified institutional buyers who bid 5.51 times and 4.01 times their allotted quotas.
The maiden public issue will remain open for subscription till January 2.
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On December 30, a day before the IPO opening for public subscription, the diagnostic and related healthcare tests services provider has already raised Rs 10.45 crore by issuing 11.61 lakh shares to nine anchor investors including 360 ONE Prime, Aarth AIF Growth Fund, Sunrise Investment Trust, Ekamya Pragati Scheme, Mastergrowth 369 Focused Equity Fund, and Nine Alps Opportunity Fund.
Incorporated in 2012, Modern Diagnostic that operates business through 21 centres (which includes 18 laboratories and 3 diagnostics centres in 8 states) intends to spend Rs 20.7 crore of IPO proceeds for purchase of medical equipment for diagnostic centre and laboratories.
Further, Rs 8 crore will be used for working capital requirement, Rs 1 crore for repayment of certain borrowings, and the remaining amount for general corporate expenses.
"We intend to expand operations by upgrading the existing one, opening new diagnostic centre in Lucknow and 6 laboratories in Delhi, Meerut, Kanpur, Aligarh and Chandigarh," Modern Diagnostic in its RHP said.
Beeline Capital Advisors is acting as the merchant banker for the Modern Diagnostic IPO.
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