Diagnostic services provider Metropolis Healthcare continues to be a busy counter similar to its on-ground business experience since the novel Coronavirus or Covid-19 outbreak.
While the diagnostic services provider is one among the other private diagnostic firms approved by the government for Covid-19 test, its institutional investors as well as promoters are quick to seize the opportunity.
In a recent move, the promoters of the diagnostic services provider have agreed to sell a part of their stake through offer for sale (OFS). The deal size is pegged at $40 million or approximately Rs 300 crore at a floor price Rs 1300 apiece. The offer price is at 10.5% discount to Tuesday’s close. The OFS carries an option to offer more shares.
Interestingly, this is second such offer with the span of one month. Last month, private equity giant Carlyle launched a block deal to nearly exit in similar fashion. It sold its stake that was acquired almost four years ago via block deal.
Carlyle held the stake in the firm through its subsidiary firm CA Lotus Investments. The offer was done under the accelerated book building offer of ordinary shares at the floor price of Rs 1,110 each through secondary market operation.
Carlyle sold 6,551,366 shares ($95mm at floor price) 13.06% of Metropolis outstanding share capital.
Goldman Sach was the joint book runner to this offer.
Metropolis reported a 55.53% decline in consolidated net profit to Rs 15.49 crore for the quarter ended March 31, 2020.
The company had posted a net profit of Rs 34.84 crore for the corresponding period of the previous fiscal.
Impact was on account of extraordinary provisioning for receivable amounting to Rs 17.7 crore pertaining to large B2B hospital.
Consolidated revenue from operations of the company stood at Rs 206.97 crore for the quarter under consideration as against Rs 201.87 crore for the same period year ago.
Net profit of the company for the fiscal year ended March this year stood at Rs 127.55 crore as against Rs 123.61 crore for the previous fiscal yea.
The Covid-19 pandemic has put the diagnostic industry at the cusp of a dynamic shift and established pathology chains such as Metropolis are set to benefit and cement leadership position.
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 with Dr Lal Pathlabs, Thyrocare, as its listed peers.
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