Modern Diagnostic IPO Subscribed Nearly 350.49 Times, Reflecting Strong Investor Confidence

Modern Diagnostic IPO Subscribed Nearly 350.49 Times, Reflecting Strong Investor Confidence

Modern Diagnostic & Research Centre, a leading diagnostic chain, has successfully concluded its Initial Public Offering (IPO), raising ₹36.89 crore, which received an exceptional response from investors across categories. The issue was oversubscribed by a staggering 350.49 times at the close of the oversubscription period, which shows the market’s confidence in the company’s growth strategy and business model.

The IPO, which was open for subscription from Wednesday, December 31, 2025, closed on January 2, 2026, had its allotment of shares completed on Monday, January 5, 2026. The allotment status for the same was made available on the BSE website or on the registrar’s website, MUFG Intime India. The public issue consisted of a fresh issue of 4.1 million equity shares, aggregating ₹38.49 crore, offered in a price band of ₹85 to ₹90 per equity share with a lot size of 1,600 equity shares. Modern Diagnostic shares also commenced trading on the BSE SME exchange on January 7, 2026.

Modern Diagnostic & Research Centre was founded by Dr. D.S. Yadav, CMD, with an esteemed & rich heritage of quality diagnostics since inception, opening operations at New Railway Road, Gurugram, in 1985, with an impressive journey of more than four decades, earning the organization a pioneering name in quality pathology, as well as quality imaging, with a capacity to conduct 2,500 different tests in-house, mostly related to molecular, cytogenic, as well as radiological, studies.

The network of the company consists of more than 20 laboratories and diagnostic centers spread over 8 states, catering to individual patients, hospitals, and corporate clients with sophisticated diagnostic solutions. The USP of the company, MDRC, lies in the blend of legacy strengths, broad test menu, accredited labs, state-of-the-art imaging and pathology offerings, home sample collection, digital reporting for patients, and the focus for accurate results in diagnostics.

The company intended to use ₹20.7 crore of the net proceeds to acquire sophisticated medical equipment for its diagnostic centers and laboratories, thus enhancing its capabilities. Another ₹8 crore was allocated to meet the working capital needs, while ₹1 crore was earmarked to repay part of the debt. The rest of the amount was set aside for general corporate purposes.

During the allotment phase, the grey market price of the unlisted shares of Modern Diagnostic was reported at around ₹103.5 per share, indicating a Grey Market Premium (GMP) of ₹13.5, or approximately 15 percent, over the higher end of the IPO price band, as reported by sources monitoring the grey market activity. It was noted that grey markets are unregulated and unofficial markets, and investors should not solely depend on the GMP for IPO listing performance.

Expressing his views on the successful IPO, Dr. D.S. Yadav, the CMD for Modern Diagnostic & Research Centre, stated, “The strong enthusiasm shown by the investors has reaffirmed our conviction that precise diagnostic facilities provide a strong base for quality health. The amount generated from the IPO has been used for the installation of the most advanced health facilities and systems that would further improve the diagnostic facilities and provide a strong base for a transparent organisation.”

With a robust subscription response and a plan in place for the use of funds, Modern Diagnostic & Research Centre entered its next phase of growth with renewed momentum and was poised to further enhance its presence and improve the standards of diagnosis across its network.