Super Religare Laboratories (SRL), which is ready to come up with the first initial public offering (IPO) in diagnostic space, will use 75 per cent of the amount raised from the IPO to pay off the debt created during the acquisition of Piramal Diagnostic Services last year.
“The acquisition has made us the company with largest marketshare of 48 per cent in the organised sector. We are planning to use 75 per cent of the money raised from the IPO to cover the debt created during the acquisition of Piramal Diagnostics. The deal was valued at Rs 600 crore,” said Sanjeev Chaudhry, chief executive officer of Super Religare Laboratories. According to sources, the debt of the company is around Rs 380 crore.
According to reports, the company is planning to issue 2.8 crore equity shares of face value of Rs 10 each, which will constitute 35 per cent of the fully-diluted post issue paid up capital of the company. “We already have a succesful track record of inorganic growth. Hence, we are looking for further acquisitions in this space,” he said. The book running lead managers for the issue are Nomura Financial Advisory & Securities (India) Pvt, Kotak Mahindra Capital and Religare Capital Markets.
The Malvinder and Shivinder Singh-promoted company’s diagnostic network comprises of eight reference laboratories, seven centers of excellence, 181 network laboratories, 15 wellness centers and 888 collection centers. “We want to raise the number of collection centers to 1,000. Expansion of scientific technologies are also on our menu,” Chaudhry added. During the financial year 2008, 2009 and 2010 , the company has generated a total income of Rs 94.39 crore, Rs 140.67 crore, Rs 169.94 crore and Rs 153.15 crore simultaneously on restricted consolidated basis.
