A promising opportunity is on the horizon as Modern Diagnostic & Research Centre Ltd, a pathology and imaging company based in Gurugram, has officially submitted its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). This significant step was taken on April 1, 2024, signaling the firm’s intention to enter the public market and expand its operations.
Company Overview and Milestones
Founded in 1985, Modern Diagnostic began its journey in the medical field from its location on New Railway Road, Gurugram. Over the years, it has built a strong reputation, serving over 15 million customers across the country. The company has established 21 centers, which include 17 laboratories and 4 diagnostic facilities, successfully conducting over 200 million tests to date.
IPO Details and Financial Goals
In its upcoming IPO, Modern Diagnostic plans to issue 4.1 million equity shares at a face value of ₹10 each through a book-built process. Notably, the prospectus does not include any offer-for-sale (OFS) portion, and the total capital anticipated from this initiative remains undisclosed. After a three-day subscription period, the shares will be listed on the Bombay Stock Exchange SME index, presenting an exciting opportunity for investors.
The funds raised from this IPO will primarily be allocated for:
- Capital expenditures: Investment in advanced medical equipment for its diagnostic centers and laboratories.
- Working capital needs: Supporting day-to-day operational expenses.
- Debt management: Repayment or prepayment of existing borrowings.
- Corporate purposes: General corporate requirements.
Financial Performance Insights
According to the company’s press release, Modern Diagnostic reported a net profit of ₹5.79 crore and revenue of ₹67.13 crore for the fiscal year ending March 31, 2024. The latest quarterly data for July to September 2024 shows a net profit of ₹4.95 crore and revenue from operations of ₹39.97 crore, indicating a robust financial trajectory.
Expert Guidance for the IPO
For this public offering, Beeline Capital Advisors Private Limited has been appointed as the book-running lead manager, while MUFG Intime India Private Limited will serve as the registrar. This collaboration aims to ensure a smooth process as the company transitions into the public domain.
Modern Diagnostic & Research Centre Ltd is poised for an exciting journey as it prepares for its IPO, marking a significant milestone in its growth and expansion strategy in the healthcare sector. With its established history and future plans, the company is set to make a notable impact on the Indian stock market.
