This site is intended for Healthcare professionals only.

Dr Lal PathLabs IPO to hit markets soon

Mumbai: Leading diagnostic chain Dr Lal PathLabs, which has received capital markets regulator Sebi’s approval to raise funds, hopes to launch an initial public offering (IPO) soon.

The company had filed its Draft Red Herring Prospectus (DRHP) with Sebi in September for the IPO wherein the promoters and other existing shareholders will collectively sell 1.16 crore shares of the company, which amounts to 14.1 per cent stake in the firm.

“The Securities and Exchange Board of India (Sebi) has cleared the proposed initial share sale and the company hopes to raise funds through IPO in next one or two months period,” Dr Lal PathLabs Chief Executive Officer Om Manchanda told reporters here.

The total amount of funds to be raised through the public offer would depend on the offer price which will be decided later, Manchanda said.

The main promoter group plans to divest 5 per cent, while other investors such as Wagner Ltd and Westbridge Crossover Fund will divest 9.1 per cent stake, he added.

As per the DRHP filed with Sebi, the IPO would be made through an offer for sale and the proceeds would be remitted to the respective promoters and other investors and therefore, the company will not receive any proceeds from the offer.

The company is well-positioned to leverage upon one of the fastest-growing segments of the Indian healthcare industry. The country’s diagnostic business is estimated at USD 6 billion and is growing at 16-17 per cent per annum, he added.

The company has 163 labs and plans to expand its franchisee network. It clocked a turnover of Rs 662.5 crore and collected 21.8 million samples from 9.9 million customers in financial year 2015.

Source: PTI
0 comment(s) on Dr Lal PathLabs IPO to hit markets soon

Share your Opinion Disclaimer

Sort by: Newest | Oldest | Most Voted