Shares of Modern Diagnostic are commanding a strong premium in the grey market, with the company’s initial public offering (IPO) attracting robust investor interest on the final day of bidding on Friday, January 2.
According to platforms tracking unofficial market activity, the grey market premium (GMP) for the issue stood in the range of 15–18 percent. Investorgain quoted a GMP of ₹16 per share, implying a potential listing gain of 17.78 percent, while IPO Watch pegged the premium at around 15.56 percent.
The ₹37-crore IPO, which had a price band of ₹85–90 per share, was subscribed more than 350 times on the final day of bidding. The issue was fully subscribed on the first day itself, garnering about 5.5 times subscription on December 31.
Ahead of the public issue, the Gurugram-based pathology and radiology testing services provider raised ₹10.45 crore on December 30 through the allotment of 11.61 lakh shares to nine anchor investors. The anchor book included 360 ONE Prime, Aarth AIF Growth Fund, Sunrise Investment Trust, Ekamya Pragati Scheme, Mastergrowth 369 Focused Equity Fund, and Nine Alps Opportunity Fund, among others.
Incorporated in 2012, Modern Diagnostic operates 21 centres, comprising 18 laboratories and three diagnostic centres, spread across eight states.
According to the red herring prospectus (RHP), the company plans to utilise ₹20.7 crore from the IPO proceeds for the purchase of medical equipment for its diagnostic centres and laboratories. About ₹8 crore will be deployed towards working capital requirements, ₹1 crore for repayment of certain borrowings, while the remaining funds will be used for general corporate purposes.
The company also plans to expand its footprint by upgrading existing facilities and opening one new diagnostic centre in Lucknow and six laboratories across Delhi, Meerut, Kanpur, Aligarh and Chandigarh.
Shares of Modern Diagnostic are expected to be allotted on January 5, with Link Intime India Pvt Ltd acting as the registrar to the issue. The stock is scheduled to list on January 7 on the SME platform of the BSE.
