PE-backed diagnostics player Thyrocare files for India IPO

The company said in a regulatory filing that it would sell 10.7 million shares, although it did not specify the price or how many shares would be offloaded by existing shareholders. CX Partners currently holds an 11.3% stake in the business, with Norwest Venture Partners (NVP) holding 9.43%, and Samara Capital Partners holding 2.03%. Emerging India Fund, which is managed by ICICI Ventures, is also an investor.

Thyrocare claims to be one of India's largest diagnostic chains, offering 192 tests covering conditions such as thyroid disorders, growth disorders, auto-immunity, diabetes, anemia, and various infectious diseases. Its central laboratory is in Mumbai and there are smaller facilities in New Delhi, Coimbatore, Hyderabad and Kolkata. There is also a network of 1,122 service providers operating under franchise arrangements.

The company conducted more than 131,000 tests in the 2015 financial year, up from 95,610 in the previous 12 months. Revenue came to INR1.87 billion ($28.1 million) in 2015 compared to INR1.56 billion the previous year, while net profit rose from INR461.5 million to INR484.5 million.

CX invested INR1.5 billion in Thyrocare in 2010, including INR250 million in compulsorily convertible debentures. This was followed by an INR1.2 billion commitment from NVP in 2012. ICICI Ventures bought INR250 million worth of shares from CX in 2013.

Another PE-backed diagnostics business, Dr. Lal PathLabs, recently raised INR6.3 billion in an IPO and saw its stock gain more than 50% on debut.

The bookrunners for the Thyrocare offering are JM Financial, Edelweiss, and ICICI Securities.

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• Topics
• Exits
• South Asia
• Healthcare
• India
• IPO
• Exit
• healthcare
• CX Partners
• Samara Capital
• Norwest Venture Partners
• ICICI Venture Funds Management Company