Announced Fri, 15 May · 14:42 IST

Pursuant to Regulation 41(4) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, please find enclosed herewith the Monitoring Agency Report issued by CARE Ratings ....

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AI summary

CARE Ratings has submitted the monitoring agency report for Modern Diagnostic's IPO of Rs. 36.89 crore (December 2025-January 2026). Out of total proceeds, Rs. 19.44 crore (53%) has been utilized by March 31, 2026 with Rs. 17.45 crore remaining unutilized. Capital expenditure for medical equipment has seen delays (Rs. 6.46 crore utilized vs Rs. 20.69 crore planned) due to location change in Delhi and supplier issues with SPECT-CT machine. Working capital utilization was Rs. 4.92 crore of Rs. 8 crore allocated, with Rs. 3.08 crore parked in fixed deposits for FY27. Repayment of borrowings (Rs. 1 crore) and general corporate purposes (Rs. 3.33 crore) were fully utilized. Issue expenses came to Rs. 3.73 crore. The MA noted that funds were comingled in current accounts and had to rely on company declarations for verification.

Likely market impact

The IPO proceeds are being deployed slower than planned due to operational delays in setting up diagnostic centers. While this is not a material deviation, investors should note that CAPEX deployment timelines have shifted from FY26 to subsequent years, and the company obtained board approval retroactively for the delays.