After strong listing of Dr Lal PathLabs and Thyrocare Technologies, another diagnostic chain Metropolis Healthcare is looking to list itself on stock exchanges in India. According to a report by Mint, the company is looking to offer partial exit to existing investor Carlyle Group through the INR10 billion (INR1,000 crore) public offer. The upcoming IPO will also see promoters selling some shares through the offer for sale (OFS) route. Citing an unnamed source, the report said Metropolis Healthcare is currently in discussions with some investment banks regarding the IPO.
On its website, Metropolis claims to be operating more than 20,000 laboratories, hospitals, and nursing homes and conducting more than 30 million tests every year. Metropolis has 130 laboratories as well as over 1,000 collection centres across the globe. Apart from India, the company has operations in UAE, Sri Lanka, South Africa, Kenya, Mauritius and Ghana. In India, Metropolis competes with other leading diagnostic chains such as Dr Lal PathLabs, SRL Diagnostics and Thyrocare.
Metropolis Healthcare is promoted by the Shah family – comprising of Chairman and founder Sushil Shah and his daughter Ameera Shah. Ameera serves as managing director of the company and is credited with transforming the company from a single laboratory to a nationwide network.
The Shah family owns 63% in the company while the Carlyle Group holds the remaining 37% equity stake. Carlyle bought the stake from Metropolis Healthcare’s former promoter G.S.K. Velu last September. On the other hand, the Shah family also increased its stake from 36% to 63% by buying out private equity (PE) investor Warburg Pincus.
Dr Lal PathLabs, Thyrocare set the stage for Metropolis Healthcare
Last year, Dr Lal PathLabs became India’s first diagnostics chain to get listed on stock exchanges in India. The company raised INR6.31 billion last year through the IPO which facilitated an exit to PE investors WestBridge Capital and TA Associates. The offer went on to reward IPO investors 50% within a week of listing. Similarly, Thyrocare Technologies brought its INR4.79 billion IPO early this year which allowed CX Partners to partially offload its shareholding. Within a week of listing, Thyrocare touched INR630 per share, reflecting a premium of 41.3% over its IPO allotment price of INR446 per share.