The IPO pipeline is hot as two mainboard IPOs have been fully subscribed on their day two of bidding, Tuesday, August 11. Molbio Diagnostics’ issue worth Rs 940 crore has been oversubscribed 3.04 times, while Dhoot Transmission’s book build issue of Rs 3,067 crore has been oversubscribed 3.86 times. 

In the unlisted markets, Dhoot’s shares are trading at a premium of over 28%, while Molbio’s GMP also signals strong gains of more than 15%. Here are important details you must know about these IPOs. 

Offer Size of Dhoot Transmission IPO and Molbio Diagnostics IPO

Dhoot Transmission’s offer size stands at Rs 3,066.89 crore, of which the auto component maker will raise Rs 1,400 crore via issuance of 1.61 crore fresh equity shares. The larger part of the offer, Rs 1,666.89 crore, will be raised through the offer for sale (OFS) route as investors will offload 1.91 crore shares of Rs 2 each. Dhoot Transmission IPO is being handled by Axis Capital.

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Molbio Diagnostics IPO of Rs 939.70 crore comprises a fresh portion of Rs 200 crore, which will be raised via issuance of 25 lakh shares, while the investor group will offload 92 lakh shares to raise capital worth Rs 737.70 crore. Kotak Mahindra Capital is the book-running manager of the issue.

KFin Technologies is the registrar to both the IPOs.

Dhoot Transmission, Molbio Diagnostics IPOs oversubscribed on Day 2

Both the offers have been oversubscribed on the second day of bidding, signalling healthy investor interest. As per the latest update, Dhoot Transmission IPO has been oversubscribed 3.86 times, while the non-institutional investor (NII) category has seen the strongest demand, with the portion subscribed 10.34 times. 

The employees quota has been subscribed 3.44 times, and the retail individual investors segment has achieved a 2.93x subscription. However, the Qualified Institutional Buyers (QIBs) portion remains undersubscribed at 0.49x. 

On the other hand, Molbio Diagnostics IPO has achieved oversubscription in all categories, with its current subscription at 3.04 times. The employees’ portion has been subscribed 4.74 times, the NII segment has received 5.00x subscription, the retail applicant category has been subscribed 3.13 times, and the QIB segment has 1.39x subscription. 

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Dhoot Transmission, Molbio Diagnostics IPO GMP signals strong gains

The share price band for Dhoot Transmission IPO has been set at Rs 829 to Rs 871 per share, and the company’s shares are trading at a GMP of 28.13% or Rs 245, suggesting a listing price of Rs 1,116, based on the upper end of the price band.

As for Molbio, its GMP stands at 15.12%, translating into an estimated listing price of Rs 929, implying gains of Rs 122 per share. The share price band for the company was set at 

Rs 768 to Rs 807. 

However, it is important to note that GMP fluctuates based on market conditions and does not guarantee profit. Therefore, it should not be treated as an official indicator of the listing price. 

Subscription timeline

Both the IPOs opened for bidding on August 10 and will close on August 12.  Share allotment for these offers is expected to be completed by August 13, and beneficiaries shall receive their shares alongside the requisite refunds by August 13. Molbio Diagnostics and Dhoot Transmission are expected to list on NSE and BSE by August 17.