India's PE-backed Dr Lal PathLabs files for IPO

The company will offer up to 11.6 million shares, all of which will come from existing shareholders, according to the filing. WestBridge will sell up to 1.5 million shares in the offer, while TA Associates will sell up to 5.8 million. If the shares are sold fully, the firms will be left with 10.6 million shares and 7.6 million shares respectively. The amount that Dr. Lal PathLabs is seeking to raise has not been disclosed.

WestBridge first invested in Dr. Lal PathLabs in 2005 through its WestBridge Ventures I fund. It later sold part of this stake to TA Associates in 2013, rolling over the rest into its more recent WestBridge Crossover Fund. TA itself had invested in the company in 2010, picking up a 16% stake from Sequoia Capital.

Founded in 1949, Dr. Lal PathLabs has grown into India's second-largest medical diagnostics chain. The company provides testing services to individual patients, hospitals and other healthcare providers, and corporate clients. In the most recent fiscal year it claimed to have processed 21.8 million samples from nearly 10 million patients nationwide.

Healthcare spending made up 4% of India's gross domestic product in 2013, lower than many other developing countries, according to the World Health Organization. A report by CRISIL attributes this to under-penetration of healthcare services and lower consumer spending on healthcare. Dr. Lal PathLabs believes demand for diagnostics services is likely to rise, with the industry growing by a CAGR of 16% over the next three years, to INR600 billion by 2018.

The company's revenue grew from INR5.4 billion for the year ended March 31, 2014, to INR6.4 billion for the year ended March 31, 2015. Over the same period profits grew from INR1.1 billion to INR1.3 billion.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Healthcare
• Exits
• GPs
• India
• WestBridge Capital Partners
• TA Associates
• healthcare
• Exit
• IPO
• GPs