India: Carlyle Group sells down stake in Metropolis Healthcare

Ameera Sushil Shah, managing director, Metropolis Healthcare

The Carlyle Group has sold a 13% stake, more or less its entire stake, in Mumbai-based diagnostics company Metropolis Healthcare to raise Rs7.6bn (US$100m).

The US multinational private equity, alternative asset management and financial services corporation continues to hold a 1.25% stake which is subject to a call option arrangement.

It sold 6.6m shares the range of Rs1,150-Rs1,160 per share. The floor was set at Rs1,110.

Although the company’s shares have a one-year return of almost 29%, they have slipped 36% from a peak of Rs1,992 at the start of March to Rs1,272.

The group raised Rs12.04bn in a heavily oversubscribed issue in April last year.

Metropolis has a presence across 18 states in India with 106 laboratories. It offers 3,480 clinical laboratory tests and profiles which are used for prediction, early detection, diagnostic screening, confirmation and/or monitoring of diseases. It also offers analytical and support services to clinical research organisations for their clinical research projects.

The IPO was managed by JM Financial, Credit Suisse, Goldman Sachs, HDFC Bank, and Kotak Mahindra Capital.

After the deal, Metropolis shares slumped almost 14$.