India: Metropolis raises $77m from CDPQ, Edelweiss PE, other anchor investors

Photo: Reuters

Diagnostics chain Metropolis Healthcare Ltd has raised about $76.8 million (Rs 530 crore) from anchor investors including Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) and the private equity arm of Edelweiss Financial Services Ltd ahead of its initial public offering (IPO).

The company allotted an aggregate of 6.02 million equity shares to 26 anchor investors at Rs 880 apiece, the regulatory filings showed on Tuesday. CDPQ acquired Metropolis shares worth Rs 15.14 crore while Edelweiss Alternative Investment Opportunities Trust subscribed to shares worth Rs 15 crore, per BSE data.

Metropolis also counts US private equity giant The Carlyle Group among its investors.

The issue, which opens tomorrow, will offer up to 13,685,095 equity shares of face value of Rs 2 each. The issue is smaller in size compared with 15.26 million shares proposed by the company at the time of filing the draft IPO papers.

The price band for the diagnostics chain’s issue has been fixed at Rs 877-880. At the upper end of the price band, the total share sale will be worth Rs 1,204 crore. Promoter Sushil Shah and Carlyle-led CA Lotus Investments are expected to sell some of their stake in the IPO, Mint reported recently. Carlyle holds a 31.2 per cent stake in Metropolis.

The IPO would value the company at about Rs 4,400 crore.

JM Financial, Credit Suisse Securities (India) Pvt. Ltd, Goldman Sachs (India) Securities Pvt. Ltd, HDFC Bank Ltd and Kotak Mahindra Capital Co Ltd are managing the public issue.

For the fiscal year ended 31 March 2018, Metropolis posted revenues of Rs 651.5 crore, compared to Rs 567.6 crore in the previous year. Its profit stood at Rs 109.7 crore in FY18, compared to Rs 107.2 crore in the previous fiscal year.

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