Popular Foundations Ltd. IPO

Q-Line Biotech

• Q-Line Biotech is coming out with an initial public offering (IPO) of 62,53,200 shares in a price band of Rs 326- 343 per equity share. 
• The issue will open on May 21, 2026 and will close on May 25, 2026.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 32.60 times of its face value on the lower side and 34.30 times on the higher side.
• Book running lead managers to the issue are Hem Securities and Share India Capital Services.
• Compliance officer for the issue is Akhand Pratap Singh.

Profile of the company

Q-Line Biotech is engaged in the business of developing, manufacturing and marketing of diverse range of reagents (including kits and POC devices) & consumables and manufacturing, importing, distribution/supply of diagnostic equipment for different diagnostic healthcare needs. The company supplies diagnostic equipment and In-Vitro Diagnostics (IVD) products for different diagnostic healthcare needs since 2013 directly or through its distributor/s majorly to diagnostic service providers, hospitals and medical colleges. The company has established its brands over a period of 12 years through its experience, R&D, manufacturing capabilities and quality assurance. 

Its key manufacturing segments include indigenous manufacturing of reagents including Clinical Chemistry, Haematology, Immunodiagnostics, Molecular Diagnostics and Others (POC Devices & Rapids) and supplying/ manufacturing of in-vitro diagnostics (IVD), Pathology equipment’s & devices. Further during the Covid-19 pandemic, the company diversified its focus and with the technical collaboration of third-party institutes and through its own R&D team developed a range of Covid testing kits viz. RT-PCR Kits, RNA Extraction Kits, VTM Kits etc.

It is research driven company engaged in developing and manufacturing a wide range of reagents formulations used across various IVD and diagnostic needs. It leverages its R&D capabilities to develop and manufacture a portfolio of differentiated reagent formulations /products. Further, for its certain Class of Reagent & equipment’s and devices manufacturing business, the company has entered into technical collaboration with certain international companies. 

Proceed is being used for:

• Meeting working capital requirements
• Repayment of certain borrowing availed by the company, in part or full
• General corporate purpose

Industry overview

The IVD market serves as a critical component of healthcare infrastructure, facilitating early disease detection and accurate diagnosis. With the increasing demand for timely and precise medical testing, IVD has become crucial in clinical decision-making, directly influencing treatment outcomes. The market segments are based on usability and application, offering a comprehensive range of diagnostic solutions tailored to varying medical requirements. While the sector has been expanding at a steady pace, segments such as immunochemistry, clinical chemistry, hematology, and molecular diagnostics continue to gain traction, driven by technological advancements and a gradual transition toward automation and point-of-care testing.

The India IVD market has experienced dynamic shifts, primarily driven by the COVID-19 pandemic. The market surged from $1,481 million in CY20 to $2,142 million in CY21 due to increased testing demand, followed by a sharp decline in CY22 and CY23 due to a high base from COVID-19 testing, which was not sustainable for continued growth, along with reduced pandemic-related testing. The market recorded a recovery, increasing from $1,511 million in CY24 to $1,677 million in CY25, supported by healthcare awareness and the prevalence of chronic diseases, and is projected to grow at a CAGR of up to 12.2%, reaching $2,978 million by CY30. This growth is likely to be driven by development of testing facilities and the rising burden of lifestyle diseases. With a steady demand for preventive healthcare, the market is expected to continue growth momentum, solidifying its critical role in India's healthcare sector.

The Indian government has taken several initiatives to strengthen the IVD industry, recognizing its critical role in disease detection, monitoring, and healthcare management. The COVID-19 pandemic highlighted the importance of robust diagnostic capabilities, prompting regulatory reforms, financial incentives, and policy support to enhance domestic manufacturing and innovation. These efforts aim to reduce dependency on imports, promote indigenous production, and make high-quality diagnostic solutions accessible and affordable. 

Pros and strengths

Established manufacturing capabilities: Its dedicated R&D division of 19 scientists and engineers drives prototyping and product validation, allowing it to move innovative solutions. By leveraging a global vendor-sourcing network and strategic tie-ups with different academic and research institutes, it continually reverse-engineer its components, refine its formulations, and optimize manufacturing processes. This concerted effort is reflected in its R&D spend which is around 1% of its revenue, underscoring its management’s commitment to sustained innovation. It operates four manufacturing facilities, three of which are located in Lucknow, Uttar Pradesh and one in the Bawana Industrial Area, Delhi. Its operations, raw-material sourcing, packaging and transportation practices, and SOP-driven process controls enable it to uphold margins and deliver consistent product quality.

Diversified product portfolio with focus on IVD industry: Over the years, it has developed a diversified product portfolio in the IVD industry which include reagents, point of care devices and kits used in Clinical Chemistry, Coagulation, Haematology, HPLC, Rapid/Elisa, molecular etc, diagnostic instruments, equipment’s, consumables and services. It is currently marketing these products in around 26 states and Union Territory with specific focus on Utter Pradesh, Rajasthan, Madhya Pradesh, Kerala and Odisha. It focuses on products which are identified based on research, analysis of market trends and demand trends in the regions, it caters. 

Widespread distribution network with a presence across all four regions: It maintains a comprehensive marketing and distribution infrastructure to support sales and service for its customers, complemented by its distributor network for efficient logistics and supply chain management. As of March 31, 2026, its field operations comprise 103 sales personnel and 35 service engineers, ensuring market coverage and customer support. Its sales representatives regularly visit laboratories, hospitals, institutions, clinical research organizations, and distributor facilities to promote its product portfolio and ensure adequate stock availability of its brands. It prioritizes building relationships with its customers and distributors, for its business growth and market penetration. Its presence enables it to provide timely technical support, conduct product demonstrations, deliver application training, and maintain strong customer engagement across its target markets. Its integrated approach to sales and service ensures customer satisfaction and supports the expansion of its market reach.

Risks and concerns

Dependence on third-party suppliers for critical raw materials and machineries: It is relying on the third-party suppliers/vendors for the supply of certain of its raw materials. A few of the raw material that it uses for manufacturing of reagent and ‘Selectra’ machines include ‘Power supply pt535, Data cable tree, Pannel PC, Power cable tree pro m’, Antigen, Antibody, Enzymes subtracts and Bulk reagents, consumables, lab chemicals and packaging materials. The suppliers of these raw material and machine equipment’s are located both in India and outside India. It also imports its raw material and machine components from the countries like Sweden, France, Spain, China, Netherlands, Hongkong, Republic of Korea. Any delay, interruption or reduction in the supply of its raw materials, trade goods from its suppliers and manufacturers both domestic and imported, or an increase in the costs of such raw materials, trade goods may adversely impact the pricing and supply of its products and have an adverse effect on its business, financial condition, cash flows and results of operations.

Reliant on agreements with the European companies: The company is dependent on agreements entered into with European companies, a third-party service provider, for the manufacturing of its machines and reagents, which is critical to its business operations these parties also supply a significant portion of its raw material. The agreement enables to utilize the technical expertise, infrastructure, and manufacturing capabilities of these companies for the timely and quality production of machines and reagents required for its operations. This agreement is valid for a specific term and is subject to renewal upon its expiry. The average tenure for majority of the Technology Transfer Agreement’s (TTS) is 10 years. While it has maintained a long-standing relationship, there can be no assurance that the agreement will be renewed on the same or more favourable terms, or at all. Any delay or failure in renewing this agreement, or entering into a new agreement on commercially acceptable terms, could lead to significant disruption in its supply chain and production schedules.

High dependence on North India and Uttar Pradesh: It is currently catering to 25 states and union territories in India, as of December 31, 2025, but a significant portion of its operations are concentrated in the states of Uttar Pradesh and Union territory of Delhi in North India. It derived 81.75%, 80.51%, 78.24% and 77.93% of its revenue from operations from Northern region for the period ended December 31, 2025, for the financial years 2025, 2024 and 2023 respectively. It also derived 75.12%, 72.25%, 65.95% and 68.51% of its revenue from operations from the state of Uttar Pradesh for the period ended December 31, 2025, for the financial years 2025, 2024, and 2023 respectively. In the event of any regional slowdown in the economic activity in North India, or any other developments including political or civil unrest, disruption or sustained economic downturn that reduce the demand for its products in the Northern region, which could adversely affect its business, results of operations and financial condition.

Outlook

Q-Line Biotech is engaged in the business of manufacturing, trading and distribution of Reagents, medical equipment for its customers located in India and outside India. Its key manufacturing segments include indigenous manufacturing of reagents including Clinical Chemistry, Haematology, Immunodiagnostics, Molecular Diagnostics and Others (POC Devices & Rapids) and supplying/ manufacturing of in-vitro diagnostics (IVD), Pathology equipment’s & devices. On the concern side, its business is dependent on the sale of its products through distributors which also include its group entity POCT services. The loss of any of these distributors or third parties for any reason may adversely affect the marketing and distribution of its products and could negatively impact its business, results of operations, financial conditions and cash flows. It is also dependent on certain key suppliers to procure a significant portion of its Raw material for production of reagents and for traded machines.

The company is coming out with a maiden IPO of 62,53,200 equity shares of face value of Rs 10 each. The issue has been offered in a price band of Rs 326-343 per equity share. The aggregate size of the offer is around Rs 203.85 crore to Rs 214.48 crore based on lower and upper price band respectively. On performance front, its total income has increased by 56.25% to Rs 32258.42 lakh in fiscal 2025 from Rs 20644.81 lakh in Fiscal 2024. The profit after tax of the company increased from Rs 3444.47 lakh in the Fiscal 2024 to Rs 2813.09 lakh in the Fiscal 2025 representing a decrease of 18.33%

Meanwhile, it has expanded its product portfolio across segments. It has consistently endeavoured to diversify its portfolio of products to cater to changing customer requirements across various segments and geographies. Its experience and expertise of around 15 years in the industry helps it to capitalise on new opportunities offered by its customers. It intends to continue strengthening its existing product portfolio and diversifying into new products with potential for growth and profitability within its existing product groups and across new applications. It continually strives to increase its market share by adding more products and distributors/retailers, laboratories, Hospital etc enabling it to achieve its higher sales targets from both existing and new customers/markets. Furthermore, it aims to expand its product portfolio to include reagents, consumables, and instruments category, by focusing on introducing new range of products. Through new range of products, it expects to increase its share and repeat orders from existing consumers and also to attract new consumers.