Carlyle achieves partial exit in India’s Metropolis Healthcare
The Carlyle Group has sold 6.5 million shares of Metropolis Healthcare for INR7.5 billion ($98.7 million) to exit nearly its entire position in the Indian medical diagnostics chain.
The GP acquired a 37% stake in Metropolis in 2015 for a reported price of INR9 billion. This fell to 14.31% last year when the company raised INR12 billion though a domestic IPO. Carlyle sold 7.4 million shares for around INR6.5 billion. Following the latest share sale, the private equity firm holds less than 2%.
Metropolis, founded in 1981, performs more than 3,400 different laboratory tests with facilities in India, the United Arab Emirates, Sri Lanka, Kenya, Mauritius, Tanzania, Uganda and Ghana. In India, it has operations in over 210 cities with a significant presence in the states of Maharashtra, Tamil Nadu and Gujarat. Clients include hospitals, nursing homes and other healthcare providers.
The company operates 119 laboratories and collects testing samples from patients via 9,500 institutional touchpoints. According to its inaugural annual report as a public entity, net profit increased by 5.9% to INR10.1 million in the most recent financial year. Annual revenue increased by 19.8% to INR5.8 billion for the financial year that ended in March 2020.
Metropolis counts Dr Lal Pathlabs, which operates more than 190 laboratories, and Thyrocare Technologies as competitors. Shares for all three companies have been on the rise due to increased demand for their services as a result of the ongoing coronavirus epidemic. Metropolis closed at INR1258.9 on April 15, down from a record high of INR2110 on March 3. The company's IPO was priced in the range of INR877-880.
In the Indian healthcare sector, Carlyle previously achieved an exit from an investment in Claris Lifesciences in 2010. It retains a minority stake in Global Health Private, the owner and operator of Medanta – the Medicity, a super-specialty Medanta hospital in the National Capital Region (NCR) of New Delhi.
More on South Asia
Latest News
Asian GPs slow implementation of ESG policies - survey
Asia-based private equity firms are assigning more dedicated resources to environment, social, and governance (ESG) programmes, but policy changes have slowed in the past 12 months, in part due to concerns raised internally and by LPs, according to a...
Singapore fintech start-up LXA gets $10m seed round
New Enterprise Associates (NEA) has led a USD 10m seed round for Singapore’s LXA, a financial technology start-up launched by a former Asia senior executive at The Blackstone Group.
India's InCred announces $60m round, claims unicorn status
Indian non-bank lender InCred Financial Services said it has received INR 5bn (USD 60m) at a valuation of at least USD 1bn from unnamed investors including “a global private equity fund.”
Insight leads $50m round for Australia's Roller
Insight Partners has led a USD 50m round for Australia’s Roller, a venue management software provider specializing in family fun parks.