Blood samples sit in the pathology lab. (Photographer: Prashanth Vishwanathan/Bloomberg)

Metropolis Healthcare’s Rs 1,204-Crore IPO Opens On April 3

Metropolis Healthcare Ltd. will launch its three-day public offering to raise Rs 1,204 crore on April 3 as the diagnostic firm’s investors pare stake.

The pathology company will sell shares at Rs 877-880 apiece in a pure offer-for-sale, according to its red herring prospectus. That will allow its largest investor CA Lotus Investments, a subsidiary of U.S.-based private equity firm Carlyle Group, to pare its stake to 16 percent from the existing 31 percent. From the promoter family, Sushil Kanubhai Shah will also bring his holding down to nearly 7 percent from about 20 percent in the Mumbai-based diagnostics firm.

Most of its revenue, according to Managing Director Ameera Shah, come from the owned patient service centers as the network of third-party service centers started two years ago.

“This is going to be the big opportunity for the company, going forward, because this new network that we have built is still not at its peak or at maturity,” she told BloombergQuint. “They will continue to give us great revenues as we move into the future and the idea is to not stop at the network that it is today but to double it.”

JM Financial, Credit Suisse Securities (India), Goldman Sachs (India) Securities, HDFC Bank and Kotak Mahindra Capital Company are the book-running lead managers for the offer. The bids for the offer can be applied for a minimum of 17 shares and its multiples. Nearly 3 lakh shares have been set aside for eligible employees.

Mumbai-based Metropolis Healthcare offers services in 197 cities across India, had 256 owned and 1,375 third-party owned patient service centres as of December.