Modern Diagnostic shares list at 11% premium over IPO price on BSE SME platform

Shares of Modern Diagnostic and Research Centre listed with a 10.5% premium on the BSE SME platform, opening at Rs 99.5 against the issue price of Rs 90. The debut was largely in line with GMP expectations, which had indicated a steady listing. The stock was quoting at a GMP of around 15%, reflecting decent investor interest in the unlisted market.

Modern Diagnostic raised Rs 36.9 crore through a fresh issue of 40.99 lakh shares, valuing the company at a pre-issue market capitalisation of about Rs 136 crore. The issue attracted institutional interest as well, with the company raising Rs 10.45 crore from anchor investors ahead of the IPO.

Modern Diagnostic operates a diagnostic chain offering pathology and radiology services across India. The company currently runs 21 centres, including 18 laboratories and three diagnostic centres, spread across eight states. Its service portfolio spans routine pathology tests to advanced imaging such as MRI, CT scans, ultrasound and digital X-rays, supported by home sample collection and online reporting.


Financially, the company has shown a sharp turnaround in recent years. Revenue rose 15% year-on-year to Rs 78.8 crore in FY25, while profit after tax jumped 55% to Rs 8.97 crore from Rs 5.79 crore a year earlier. EBITDA margins improved meaningfully as scale benefits kicked in and losses seen in earlier years were reversed. As of June 2025, the company reported PAT of Rs 3 crore on income of Rs 22.67 crore, indicating continued operational momentum.

IPO proceeds are largely earmarked for growth and balance sheet strengthening. Around Rs 20.7 crore will be used for capital expenditure on medical equipment, Rs 8 crore for working capital, and Rs 1 crore for repayment of borrowings, with the balance allocated to general corporate purposes.

With a 15% GMP, Modern Diagnostic's listing expectations are measured rather than euphoric. If broader market sentiment remains stable, the IPO is likely to deliver a respectable debut, though sustained performance post-listing will hinge on execution, expansion discipline and margin stability.

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