Private equity giant Carlyle has launched a block deal to nearly exit from the multinational pathology chain owner Metropolis Healthcare, via block deal, the stake that was acquired almost four years ago.
Metropolis Healthcare is one of the private diagnostic firms approved by the government for COVID-19 tests.
Carlyle is pressing ahead to sell its shares in the firm through its subsidiary firm CA Lotus Investments.
This offer will be done under the accelerated book building offer of ordinary shares at the floor price of Rs 1,110 each through secondary market operation. The offer price is at 17% discount to Monday’s closing share price of Rs 1,337.55.
Carlyle will sale 6,551,366 shares ($95mm at floor price) 13.06% of Metropolis outstanding share capital.
Goldman Sach is the joint book runner to this offer.
Metropolis Healthcare has its central laboratory in Mumbai, Maharashtra and a chain of 125 clinical laboratories and 2781 patient service centres.
It is present in 19 states and 210 cities in India and has overseas labs in Africa, Mauritius and Sri Lanka. During the financial year 2018, the firm conducted around 17 million tests from 8.9 million patient visits.
It counts Dr Lal Pathlabs, Aster DM Healthcare and Kovai Medical Centre Hospital Ltd as its listed peers.
Metropolis is also betting on its business-to-consumer segment through which it intends to derive 60-65 percent of its total revenue in the next few years by focusing on these cities.
Metropolis Healthcare has aggressively expanded its patient touch-point network over the last three years to accelerate its B2C segment growth with 5x increase in collected centers
However post the Carona virus outbreak crisis, with the lockdown announced this will surely impact the short term business performance for the company although long term prospects continue to look good.
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.