Upcoming IPO: Modern Diagnostic files DRHP at BSE for SME IPO. Details here

Upcoming IPO: Gurugram-based pathology and imaging firm Modern Diagnostic & Research Centre Ltd filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI) on Monday, March 31.

The company started its pathology and imaging operations in 1985 from New Railway Road in Gurugram, and since then, it has catered to more than 1.5 crore customers.

According to the data collected from the official website, the company has 21 centres across the nation, including 17 laboratories and 4 diagnostic centres, where it has conducted more than 20 crore tests.

Modern Diagnostic IPO Details

Modern Diagnostic, through a book-built issue, aims to raise money from the Indian stock market from a fresh issuance of 41,00,000 or 41 lakh equity shares with a face value of ₹10 apiece. The offer document does not comprise any offer-for-sale (OFS) component, and the total amount of the issue is undisclosed in the regulatory filing.

After the subscription rounds for three days, the SME IPO will be listed on the Bombay Stock Exchange SME index.

The pathology and imaging firm plans to use the money raised from the initial public offering (IPO) to fund its capital expenditure (capex) needs for the purchase of medical equipment for its diagnostic centres and laboratories.

The company will also use the proceeds from the issue to fund the working capital needs, and also in the repayment or prepayment of certain outstanding borrowings availed by Modern Diagnostic. The remaining funds will be used to support the general corporate needs.

Beeline Capital Advisors Private Limited has been appointed as the book-running lead manager for the public issue, while MUFG Intime India Private Limited will be the registrar for the offer.

According to the official press release, Modern Diagnostic reported a net profit of ₹5.79 crore and a revenue from operations of ₹67.13 crore for the financial year ending March 31, 2024.

The company's net profit for the July to September quarter of the financial year 2024-25 was at ₹4.95 crore, and the revenue from operation was at ₹39.97 crore, according to the company data.

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