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Diagnostic services provider Agilus Diagnostics announced on Tuesday that it will withdraw its draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (Sebi).
After the decision was announced late Tuesday night, Fortis Healthcare stock fell 3.23 per cent in morning trade around 11 am.
The company said in its regulatory filing that the decision to withdraw the DRHP has been taken due to commercial considerations and in consultation and mutual agreement with the private equity investors of Agilus and its board of directors, the company said in a regulatory filing on the Bombay Stock Exchange (BSE).
It is not yet clear whether the PE investors are going for a stake sale to another potential buyer or stay invested in Agilus for now.
According to the DRHP filed by the company in September 2023, the initial public offering (IPO) was to comprise an offer for sale (OFS) of 14.2 million equity shares by Agilus’s investors, namely International Finance Corporation, NYLIM Jacob Balls India Fund III LLC, and Resurgence PE Investments.
While International Finance Corporation was to sell up to 2.985 million shares under the OFS, NYLIM Jacob Balls and Resurgence PE offered up to 7.462 million and 3.786 million equity shares, respectively. The face value of each share was set at Rs 10.
Agilus Diagnostics, a subsidiary of Fortis Healthcare, provides wellness and preventive care diagnostic packages, hospital laboratory management services, and clinical research trial testing services, according to a statement from the company.
According to the segmental breakup of Fortis Healthcare’s Q3 FY24 results, the diagnostics business gross revenues were at Rs 330.7 crore, a 0.25 per cent year-on-year (Y-o-Y) fall from Rs 331.5 crore in Q3 FY23.
Sequentially, the diagnostics business gross revenue fell by 8.2 per cent in Q3 FY24, from Rs 360.25 crore reported in the last quarter.
The company added that it was making the necessary application to Sebi for the withdrawal of the said DRHP immediately and may re-file with Sebi again for a proposed IPO in the future, subject to applicable laws.
