Modern Diagnostic IPO shares see double-digit GMP ahead of its market debut

Modern Diagnostic and Research Centre IPO News

• Modern Diagnostic IPO shares traded at a 15 percent premium in the grey market
• IPO saw over 350 times subscription, raising nearly Rs 37 crore
• Funds to be used for equipment, expansion, and debt repayment

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Pathology and radiology testing services provider Modern Diagnostic and Research Centre's IPO shares attracted double-digit premium in the grey market ahead of its listing scheduled on the BSE SME on January 7.

Grey market participants traded Modern Diagnostic IPO shares at a 15 percent premium, the market observers said. The grey market is an unofficial market for trading in the IPO shares till their listing on the bourses.

Perhaps, this seems to be far less premium compared to the subscription demand for the IPO seen last week. The public issue saw more than 350 times subscription during December 31-January 2.

Non-institutional investors bid 519 times their allotted quota, followed by retail investors and qualified institutional investors whose reserved portions subscribed 342 times and 193 times, respectively.

Devendra Singh Yadav-promoted diagnostic and related healthcare tests services provider approached capital markets to mop up nearly Rs 37 crore via Initial Public Offering (IPO) of 40.99 lakh shares at Rs 90 per share.

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Gurugram-based Modern Diagnostic intends to spend IPO proceeds for purchase of medical equipment for diagnostic centre and laboratories, working capital requirement, repaying debt, and general corporate purpose.

The company that currently operates pathology and radiology testing services through 3 diagnostic centres and 18 laboratories intends to expand operations by upgrading the existing one, by opening new diagnostic centre in Lucknow and 6 laboratories in Delhi, Meerut, Kanpur, Aligarh and Chandigarh.

Modern Diagnostic, which competes with listed peer Vijaya Diagnostic Centre, has reported profit of Rs 3 crore on revenue of Rs 22.5 crore for three months period ended June 2025. Profit in the fiscal 2025 increased to Rs 8.96 crore, up 54.8 percent from Rs 5.8 crore in previous year, while revenue grew by 16.1 percent to Rs 77.9 crore, up from Rs 67.1 crore in the same period.

Beeline Capital Advisors acted as the book running manager for the Modern Diagnostic IPO.