The healthcare space is once again inviting public investment with the launch of the Modern Diagnostic & Research Centre Ltd (MDRC) Initial Public Offering. Positioned as an integrated diagnostic services provider, the company is looking to raise capital through a book-building SME issue. This move comes at a time when the organized diagnostic sector in India is experiencing robust growth, driven by increasing health awareness and better infrastructure penetration.
The MDRC IPO, which is entirely a fresh issue of shares, is critical for the company as it seeks to scale its operations and solidify its presence across the country. The total issue size is approximately ₹36.89 crore comprising 40,99,200 equity shares. The funds raised are earmarked for specific, growth-oriented purposes, signaling a clear roadmap for expansion to investors. Given that this is an SME listing, participants should anticipate the typically higher minimum investment required, catering to non-institutional and high net-worth individuals.
Issue Timeline and Fixed Price Band
The bidding window for the Modern Diagnostic IPO is set to open shortly, providing a brief period for investors to place their applications. Key dates are confirmed across multiple sources, offering clarity on the timeline from subscription to listing.
The subscription window starts on Tuesday, December 31, 2025, and closes on Friday, January 2, 2026. This tight schedule is standard for SME issues.
Here is a snapshot of the essential IPO details:
- Open Date: December 31, 2025
- Close Date: January 2, 2026
- Price Band: ₹85 to ₹90 per equity share
- Face Value: ₹10 per share
- Total Issue Size: ₹36.89 Crore (40,99,200 shares)
- Listing Platform: BSE SME
The minimum application for retail investors is set at 3,200 shares, requiring a minimum investment of ₹2,88,000 at the upper price band of ₹90.
Integrated Model and Financial Performance
Modern Diagnostic & Research Centre offers an integrated one-stop solution covering both pathology and radiology services. This comprehensive model includes high-end testing capabilities such as MRI, CT scans, ultrasound, specialized molecular diagnostics, and cytogenetics. Operating a network of 21 centers (comprising laboratories and full diagnostic centers) across eight states, the company leverages a centralized IT platform for seamless reporting and logistics, including popular home sample collection services.
From a financial perspective, the company has demonstrated a turnaround and growth trajectory. While the company reported a loss in the financial year ending March 31, 2023, it swung to a significant profit after tax (PAT) of ₹5.79 crore for the year ended March 31, 2024. Revenue has also shown steady growth, climbing to ₹68.67 crore in FY24. This recent strong profitability will be a crucial point of evaluation for investors, especially in comparison to its publicly listed peers in the diagnostics sector, such as Dr. Lal PathLabs and Metropolis Healthcare.
Utilisation of Fresh Capital
The proceeds from the fresh issue are strategically allocated to support the company’s expansion plans, which is a major signal of future growth potential. The primary objectives are:
- Capital Expenditure: A significant portion of the funds, approximately ₹20.69 crore, is earmarked for the purchase of advanced medical equipment for its diagnostic centers and laboratories. This investment in technology, such as high-field MRI and multi-slice CT scanners, is key to maintaining a competitive edge in advanced testing.
- Working Capital: The company will use funds to meet its incremental working capital requirements, ensuring smooth day-to-day operations as the network expands.
- Debt Repayment: A portion is also allocated for the repayment of certain outstanding borrowings, which will help reduce the company’s debt burden and improve its leverage ratio going forward.
This clear allocation towards capital expenditure for high-end equipment suggests an aggressive strategy to capture more complex, and often higher-margin, diagnostic tests in new and existing markets.
FAQ
What is the primary use of the funds being raised by the MDRC IPO?
The majority of the funds are allocated towards capital expenditure for the purchase of new, advanced medical and diagnostic equipment for the company’s laboratories and centers, followed by funding working capital and partial debt repayment.
Is the Modern Diagnostic IPO an Offer for Sale (OFS)?
No, the Modern Diagnostic & Research Centre Ltd IPO is entirely a Fresh Issue of 40,99,200 equity shares. There is no Offer for Sale component from the promoters or existing shareholders.
Disclaimer: This analysis is based on information available in the company’s IPO documents and market reports. Investment in SME IPOs carries specific risks, and potential investors should conduct their own thorough research and consult a financial advisor before making any investment decision.
