Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ) and the private equity arm of Edelweiss Financial Services Ltd have come in as anchor investors in Metropolis Healthcare Ltd ahead of the diagnostic chain’s initial public offering (IPO).
CDPQ has acquired 1.72 lakh Metropolis shares worth Rs 15.14 crore ($2.19 million at current exchange rates), while Edelweiss Alternative Investment Opportunities Trust also bought Metropolis shares worth Rs 15 crore, stock-exchange data showed.
In all, Metropolis raised Rs 530.04 crore ($76.69 million) by allotting 6.02 million shares to 26 investors at the upper end of the Rs 877-880 per share price band for the IPO that opens on Wednesday.
Metropolis also counts US-headquartered private equity giant The Carlyle Group among its investors.
The company has reduced the overall issue size to 13.68 million shares as against 15.26 million shares at the time of filing its draft papers.
Metropolis is eyeing a valuation of Rs 4,415.72 crore ($637.64 million) through the IPO.
The Rs 1,204 crore IPO is entirely a secondary market sale by the promoter Dr. Sushil Shah and Carlyle. It will result in a 27.27% stake dilution. The selling shareholders will get all the money raised via the IPO. The company will not receive any proceeds from the offering.
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.
Metropolis will become the third diagnostics chain to list its shares on the stock exchanges. The diagnostics sector had burst into the limelight in late-2015 after Dr Lal PathLabs became the first of its kind to get listed on the bourses. Smaller peer Thyrocare followed suit in 2016 with a spectacular listing.