Shares of Modern Diagnostic and Research Centre are set to make their stock market debut today, January 7, on the BSE SME platform. As per media reports, the grey market premium (GMP) stands at around 15 percent, pointing to a likely listing price in the range of Rs 103 to Rs 105 against the IPO issue price of Rs 90 per share. The GMP trend suggests a steady opening rather than an aggressive listing pop.
IPO Details and Grey Market Trend
The IPO, which closed for subscription on January 2, consisted entirely of a fresh issue of 40.99 lakh equity shares. Through the issue, the company raised Rs 36.9 crore, translating into a pre issue market capitalisation of about Rs 136 crore. Ahead of the public issue, Modern Diagnostic also raised Rs 10.45 crore from anchor investors, indicating institutional interest in the offering.Business Overview
Modern Diagnostic operates a diagnostic services chain offering both pathology and radiology solutions across India. The company currently runs 21 centres, including 18 laboratories and three diagnostic centres, spread across eight states. Its service portfolio includes routine pathology tests along with advanced imaging services such as MRI, CT scans, ultrasound, and digital X rays. These services are supported by home sample collection and online reporting facilities.Financial Performance
The company has reported a notable improvement in its financial performance in recent years. Revenue grew 15 percent year on year to Rs 78.8 crore in FY25, while profit after tax surged 55 percent to Rs 8.97 crore from Rs 5.79 crore in the previous year. Operating profitability also improved, supported by scale benefits and a reversal of losses recorded in earlier periods.For the period ended June 2025, the company reported a profit after tax of Rs 3 crore on income of Rs 22.67 crore, reflecting continued operational momentum.
Use of IPO Proceeds
The proceeds from the IPO are largely earmarked for expansion and balance sheet strengthening. Around Rs 20.7 crore will be used for capital expenditure towards medical equipment, Rs 8 crore has been allocated for working capital requirements, and Rs 1 crore will be utilised for repayment of borrowings. The remaining funds will be deployed for general corporate purposes.Listing Outlook
As per media reports, the GMP of around 15 percent sets expectations for a measured debut for Modern Diagnostic on the BSE SME platform. The stock’s performance after listing is expected to hinge on execution, expansion pace, and the company’s ability to maintain margin stability.Disclaimer:
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy, sell, or hold any securities. Grey market premium is an unofficial indicator and is based on media reports and market perceptions, which may change without notice. Actual listing performance may differ due to market conditions and other factors. Investors are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.
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The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.