The initial public offering (IPO) of Modern Diagnostic & Research Centre Ltd is concluding today, Friday, January 2, 2026, after witnessing an exceptionally strong response from the investing community. Over the three-day bidding window, the SME IPO has attracted heavy interest across investor categories, pushing the overall subscription close to 59 times by mid-morning on the final day.
The strong demand highlights rising confidence in healthcare diagnostics businesses, particularly those with a long operating history and improving profitability.
Final-Day Subscription Shows Broad-Based Participation
According to data available until 10:40 AM, investors placed bids for more than 16 crore shares, while the total issue size stood at just 27.31 lakh equity shares. The sharp gap between demand and supply underscores the intensity of interest in the offering.
Subscription details by investor category:
Retail Individual Investors (RII): 61.00 times
Non-Institutional Investors (NII): 120.98 times
Qualified Institutional Buyers (QIB): 8.95 times
Overall subscription: 58.95 times
The NII segment emerged as the strongest contributor, reflecting aggressive participation from high-net-worth investors. Retail investors also showed notable enthusiasm despite the higher-than-average capital requirement for entry.
Grey Market Activity Points to Measured Optimism
In the unofficial market ahead of listing, Modern Diagnostic’s unlisted shares were quoted around ₹104, according to dealers tracking grey market trends.
With the upper end of the IPO price band fixed at ₹90, this places the grey market premium (GMP) at roughly ₹14, or 15.5% above the issue price.
Such a premium indicates expectations of a reasonable, though not explosive, listing debut. Market observers note that while GMP reflects current sentiment, it can fluctuate sharply depending on broader market conditions.
What Grey Market Premium Really Tells Investors
Grey market trading is often watched closely during IPOs, but it remains an informal indicator rather than a guaranteed outcome.
Key points investors should keep in mind:
GMP is unofficial and sentiment-driven
It does not ensure listing-day gains
SME IPOs are especially prone to volatility
Premiums can rise or fall quickly before listing
For this reason, investors are encouraged to rely more on fundamentals than on grey market trends alone.
IPO Size, Pricing, and Structure Explained
Modern Diagnostic & Research Centre Ltd is raising funds through a ₹36.89 crore book-built IPO.
Key offer features:
Price band: ₹85 to ₹90 per share
Total issue size: ₹36.89 crore
Shares issued: Approximately 0.41 crore equity shares
Issue composition: Entirely a fresh issue
Offer for sale: None
Because the issue consists solely of newly issued shares, all funds raised will be directed toward the company’s growth plans rather than providing an exit to existing shareholders.
Important Dates Investors Should Track
With the IPO closing today, the next few sessions will be crucial for applicants.
IPO closing: January 2, 2026
Allotment finalisation: Expected on January 5, 2026
Refunds initiation: January 6, 2026
Demat credit of shares: January 6, 2026
Listing date: January 7, 2026
Exchange: BSE SME
Post-listing, the stock will trade on the BSE SME platform, where price movements can be sharper due to relatively lower liquidity.
Minimum Investment Requirement and Lot Size
The IPO comes with a large lot size, which has restricted participation primarily to investors with higher capital availability.
At the upper price band of ₹90:
Lot size: 1,600 shares
Retail minimum application:
2 lots (3,200 shares)
Investment amount: ₹2.88 lakh
HNI minimum application:
3 lots (4,800 shares)
Investment amount: ₹4.32 lakh
Despite the elevated entry threshold, subscription data suggests that investors have not been deterred.
IPO Management and Key Intermediaries
The IPO is being handled by a group of experienced market participants:
Book Running Lead Manager: Beeline Capital Advisors Pvt Ltd
Registrar to the Issue: MUFG Intime India Pvt Ltd
Market Maker: Spread X Securities Pvt Ltd
The presence of a designated market maker is particularly important for SME listings, as it helps ensure liquidity during the initial trading sessions.
Company Overview: A Longstanding Presence in Diagnostics
Modern Diagnostic & Research Centre Ltd has been part of India’s healthcare landscape since 1985. Over the past four decades, it has steadily built a reputation for reliable diagnostic services.
The centre delivers a comprehensive range of pathology and radiology solutions, supporting not only individual patients but also hospitals, clinics, and institutional partners.
Its long-standing presence in the industry has helped it develop deep operational expertise, while maintaining a strong and dependable service network that continues to uphold quality standards in medical diagnostics.
Range of Services and Operational Approach
The company’s service portfolio includes:
Pathology testing
Radiology and imaging diagnostics
Preventive health screening packages
Home sample collection
Digital report access
By focusing on diagnostics rather than treatment, the company maintains a relatively asset-light structure compared with full-scale hospital chains.
Growth Strategy and Use of IPO Proceeds
Modern Diagnostic plans to use the IPO proceeds to support its next phase of growth.
Key focus areas include:
Strengthening laboratory infrastructure
Expanding service reach
Investing in digital platforms
Meeting working capital needs
The company’s scalable model allows expansion without disproportionate increases in fixed costs, which is seen as a positive by investors.
Financial Performance Strengthens the Investment Case
The company’s recent financial performance has been one of the key factors driving investor interest.
For FY25:
Revenue increased by around 15% year-on-year
Profit after tax rose by approximately 55%
The sharp improvement in profitability suggests better cost control and operating leverage, which has enhanced the company’s appeal in a competitive diagnostics market.
Risks Investors Should Not Ignore
Despite strong demand, investors should consider the following risks before making decisions:
Regulatory oversight in the healthcare sector
Competition from larger diagnostic chains
Liquidity limitations associated with SME stocks
Sensitivity to pricing pressure from institutional clients
SME IPOs can experience sharp price swings after listing and may not be suitable for risk-averse investors.
Why the IPO Has Attracted Attention
Several factors appear to be working in the company’s favour:
Growing emphasis on preventive healthcare
Rising demand for diagnostic testing
Limited availability of profitable healthcare SMEs
Strong improvement in earnings
These elements have combined to create positive sentiment around the issue.
Investor Perspective Going Forward
As the Modern Diagnostic IPO closes today, the nearly 59x subscription and positive grey market signals reflect optimism around the company’s prospects. However, investors are advised to maintain a long-term view and assess the stock’s fundamentals rather than focusing solely on listing-day performance.
The company’s debut on January 7, 2026, will provide greater clarity on how the market ultimately values the business.