Molbio Diagnostics Stock Soars More Than 5% Following 1.99% Stake Purchase by HDFC Mutual Fund

Shares of Molbio Diagnostics soared by more than 5% on Thursday, October 1, following the purchase of a 1.99% stake by HDFC Mutual Fund in the newly listed diagnostics company through bulk purchase. 

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This happened on September 30 when HDFC Mutual Fund purchased 23 lakh shares of the company from Goa for Rs 302.45 crore. The price per share was Rs 1,315, according to BSE data in the report. 

The stock traded at a value of Rs 1,309.55 on the BSE on Thursday before moving higher to an intra-day high of Rs 1,378.55. The lowest point touched by the stock was Rs 1,309.45. 

Motilal Oswal PE Entity Trims Stake 

While HDFC Mutual Fund added shares, Business Excellence Trust III, managed by Motilal Oswal Private Equity, reduced its holding in Molbio Diagnostics. 

The fund sold 23.28 lakh shares, reducing its stake by 2.02 percentage points. 

The shares were sold at Rs 1,315.01 apiece, taking the total transaction value to Rs 306.26 crore. 

Molbio Shares Up Around 71% From IPO Price 

Molbio Diagnostics has seen a strong run since making its stock market debut on August 17. 

The company had priced its IPO at Rs 807 per share. Its shares listed at Rs 980 on the BSE, a premium of 21.43% over the issue price. 

The stock subsequently touched Rs 1,064.85 on its listing day before closing at Rs 1,036.30, marking a gain of 28.41% over the IPO price. 

On the NSE, Molbio Diagnostics also debuted at Rs 980 and ended its first trading session at Rs 1,041.70, around 29% above the issue price. 

Following its latest rise, the stock has gained approximately 71% from the IPO price. 

Jefferies Initiates Coverage With Rs 1,600 Target 

The stock has also drawn attention from international brokerage Jefferies, which initiated coverage on Molbio Diagnostics with a ‘Buy’ rating and a target price of Rs 1,600 per share. 

The target represents an upside of more than 98% when compared with the company’s IPO price of Rs 807. 

Jefferies highlighted Molbio’s innovation-led approach and its pipeline of diagnostic products while pointing to its flagship Truenat platform as a key part of the company’s business. 

According to the brokerage, Molbio has developed two platforms in-house and acquired another. It has secured 16 patents in India and 191 overseas. 

Truenat Supports Testing for 30 Diseases 

Molbio’s Truenat platform was developed over 13 years of research and development. The battery-operated and portable molecular diagnostics platform is designed to enable point-of-care testing. 

It currently supports testing for 30 diseases and is patent-protected across more than 100 countries, according to Jefferies. 

The brokerage said Truenat currently generates around $130 million in revenue, compared with roughly $3 billion for GeneXpert. 

The combination of the HDFC Mutual Fund bulk deal and continued attention on the newly listed company kept Molbio Diagnostics shares in focus during Thursday’s trading session.