Modern Diagnostic & Research Centre Limited shares are set to make their market debut today on BSE SME, with grey market premium indicating a 15% premium ahead of listing. The healthcare diagnostics company's IPO, which closed for subscription on January 2, was priced at ₹90 per share and raised ₹36.90 crores through a fresh issue.

Listing Expectations and Market Response

Based on current grey market trends, the stock is expected to list around ₹103-105, suggesting moderate gains for investors. The revised grey market premium of 15% reflects measured investor confidence rather than euphoric expectations, indicating a steady debut performance.

The IPO attracted institutional interest, with the company successfully raising ₹10.45 crores from anchor investors ahead of the public issue, demonstrating strong institutional confidence in the company's prospects.

Company Operations and Network

Established in 1985, Modern Diagnostic & Research Centre operates an extensive network of 21 centres across 8 states in India, comprising 18 laboratories and 3 diagnostic centres. The company provides comprehensive diagnostic services ranging from routine pathology tests to advanced imaging solutions.

The company's comprehensive service portfolio includes routine and specialized pathology tests, advanced imaging such as MRI and CT scans, ultrasound, digital X-rays, supported by convenient home sample collection and online reporting facilities.

Strong Financial Turnaround

Modern Diagnostic & Research Centre has demonstrated remarkable financial improvement, showing a sharp turnaround in recent years. The company reported revenue growth of 15% year-on-year to ₹78.80 crores in FY25, while profit after tax surged 55% to ₹8.97 crores from ₹5.79 crores in the previous year.

EBITDA margins improved meaningfully as scale benefits materialized and losses from earlier years were reversed. The latest data shows continued operational momentum with PAT of ₹3.00 crores on income of ₹22.67 crores as of June 2025.

Strategic Fund Deployment

The IPO proceeds of ₹36.90 crores will be strategically deployed for growth initiatives and balance sheet strengthening. The largest allocation focuses on expanding the company's technological capabilities and service infrastructure.

The strategic allocation emphasizes capital expenditure for medical equipment acquisition, working capital enhancement, and partial debt repayment, positioning the company for sustained growth in the expanding healthcare diagnostics sector.

Investment Outlook

With a 15% grey market premium, Modern Diagnostic's listing expectations remain measured rather than euphoric. The company's four-decade operating track record, comprehensive diagnostic services, and strong financial turnaround position it favorably for a respectable market debut, though sustained post-listing performance will depend on execution capabilities and expansion discipline in the competitive healthcare diagnostics market.

Modern Diagnostic & Research Centre Limited's ₹29.69 crore initial public offering has received an exceptional response from investors, achieving a remarkable overall subscription of 30.84 times. The comprehensive healthcare diagnostics services provider, which operates 21 centres including 18 laboratories and 3 diagnostic centres across 8 states, has attracted unprecedented interest across all investor categories.

Outstanding IPO Subscription Performance

The public offering has demonstrated extraordinary demand across all investor segments, with the bHNI (Non-Institutional Buyers) category leading with an exceptional 63.43 times subscription. Retail investors have shown tremendous confidence with 33.82 times subscription, while sHNI category achieved 32.04 times subscription, reflecting strong market confidence in the company's healthcare diagnostics business model.

IPO Structure and Timeline

The public offering comprises entirely of fresh issue shares worth ₹29.69 crore, with the bidding period running from December 31, 2025, to January 2, 2026. The company will utilize the proceeds primarily for capital expenditure on medical equipment and working capital requirements.

Fund Utilization Strategy

The net proceeds from the IPO will be allocated strategically across multiple growth initiatives. The largest portion of ₹20.69 crore will fund capital expenditure for advanced medical equipment including PET CT scanners and SPECT machines. Additionally, ₹8.00 crore will support working capital requirements, while ₹1.00 crore will be used for debt repayment.

Strong Financial Performance

Modern Diagnostic & Research Centre has demonstrated remarkable financial recovery and growth trajectory. The company achieved a significant turnaround from losses in FY23 to strong profitability, with revenue growing consistently over the past two years.

Business Operations and Investment Highlights

Founded in 2012 with a legacy dating back to 1985, the company provides comprehensive diagnostic services including advanced technologies like 3Tesla MRI, 128 slice Dual Energy CT scans, and genetic testing services. The company operates an advanced centralized IT platform that integrates its extensive network through unified logistics and payment systems. The exceptional subscription response reflects strong investor confidence in India's growing healthcare diagnostics sector and the company's proven operational metrics with consistent profitability improvement.