 "Dr Lal PathLabs plans IPO; files draft papers with Sebi")
Leading diagnostic chain Dr Lal PathLabs is planning to go public and has filed draft papers with market regulator Sebi to raise funds through an IPO.
The Draft Red Herring Prospectus (DRHP) was filed with the Securities and Exchange Board of India yesterday for the Initial Public Offer, wherein the promoters and other existing shareholders will collectively sell 11.6 million shares of the company amounting to 14.1 per cent stake.
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The total amount of funds to be raised through the IPO would depend on the offer price to be decided later.
Those participating in the share sale include main promoter Arvind Lal, as also other investors such as Wagner Ltd, Westbridge Crossover Fund and Sanjeevini Investment Holdings Ltd.
As per the DRHP filed with Sebi, the IPO would be made through an Offer for Sale and the proceeds would be remitted to the respective promoters and other investors and therefore the company will not receive any proceeds from the offer.
Kotak Mahindra Capital and Citigroup Global Markets India are the book running lead managers for the IPO.
The company said it is well-positioned to leverage upon one of the fastest-growing segments of the Indian healthcare industry.
Its total revenue rose to Rs 640 crore in the fiscal ended March 31, 2015, from Rs 544 crore in the previous year, while profit after tax rose to nearly Rs 88 crore from Rs 74 crore during the same period.
