Metropolis Healthcare has sold its shares to anchor investors to raise a sum of Rs.530 crore ahead of its Rs.1,204 crore IPO. The company allotted a total of 60,23,293 shares at a price of Rs.880 apiece to anchor investors, according to a regulatory filing. The anchor investors who purchased the company’s equity shares include Fundsmith Emerging Equities Trust, Small Cap World Fund, UTI Equity Fund, Sundaram Mutual Fund, and Edelweiss Crossover Opportunities Fund, among others.
Metropolis Healthcare recently announced that it was launching a Rs.1,200 crore IPO, which will hit the bourses on 3 April 2018. The company’s initial public offer will close on 5 April 2019. Metropolis Healthcare will be selling up to 13,685,095 shares through the initial public offer.
Mr. Sushil Shah, the company’s promoter, will be selling 62,72,335 shares, while CA Lotus Investments will be selling up to 74,12,760 shares. The diagnostic chain has reserved a total of 3 lakh shares for its employees. A price band between Rs.877 and Rs.880 apiece has been fixed for the IPO.
Mr. Shah said the company will not be utilising the proceeds from the issue. Instead, the promoters will be utilising the sum that is raised to retire their debts. The Carlyle Group holds a 31% stake in Metropolis Healthcare and the promoters hold the remaining stake, which will be diluted by 10% to 12% after the IPO. HDFC Bank, JM Financial, Goldman Sachs, Kotak Mahindra Capital, and Credit Suisse have been appointed as the lead managers.
Metropolis Healthcare is currently debt free. The company’s revenue from operations increased at a CAGR of 16.3% to a sum of Rs.643.6 crore in FY18, while the company’s profits increased at a CAGR of 15.7% to a sum of Rs.109.7 crore.
Metropolis Healthcare has a presence in around 19 states in India and holds a leadership position in South India and West India via its network of 1,473 patient touch points, 83 clinical laboratories, and 396 assisted referral centres in the two regions.
Source: The Economic Times, The Times of India