Modern Diagnostic and Research Centre shares are commanding a premium of about 14 percent in the grey market as the company’s initial public offering (IPO) witnessed strong investor interest on the second day of bidding on Wednesday.
According to platforms tracking unofficial market activity, the grey market premium (GMP) for the issue stood at around 14 percent. Investorgain quoted a GMP of Rs 12 per share, indicating a potential listing gain of about 13 percent, while IPO Watch placed the premium at around 14 percent.
The Gurugram-based pathology and radiology testing services provider’s IPO was subscribed over 29 times on January 1, the second day of bidding. The issue was fully subscribed on the first day itself, with a subscription of about 5.5 times on December 31.
The bidding for the issue is open between 10 am and 5 pm and will remain open for subscription till January 2.
The company aims to raise about Rs 37 crore through the IPO by issuing 40.99 lakh fresh shares at the upper end of the price band of Rs 85–90 per share.
Ahead of the public issue, the company raised Rs 10.45 crore on December 30 by allotting 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 operates 21 centres, including 18 laboratories and three diagnostic centres, across eight states. The company plans to use Rs 20.7 crore from the IPO proceeds to purchase medical equipment for its diagnostic centres and laboratories.
About Rs 8 crore will be utilised for working capital requirements, Rs 1 crore for repayment of certain borrowings, and the remaining amount for general corporate purposes.
The company also plans to expand its operations by upgrading existing facilities and opening a new diagnostic centre in Lucknow and six laboratories in Delhi, Meerut, Kanpur, Aligarh and Chandigarh, as stated in its red herring prospectus.
Shares of the company are expected to be allotted by January 5 through the registrar Link Intime India Pvt Ltd, while the listing is scheduled for January 7 on the SME platform of the BSE.
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