Private equity firm Avigo Capital Partners plans to buy 9.27% stake in Malvinder and Shivinder Singh-promoted Super Religare Laboratories (SRL), ahead of the diagnostics chain's maiden public issue.
Avigo Capital Partners, which invests in small and mediumsized firms, will subscribe to around 53 lakh shares of SRL at Rs 189 a share through a Mauritius-based investment arm, according to ET calculations. After the IPO, Avigo's stake in the country's largest diagnostic services firm will drop to 6.6%.
Achal Ghai, Avigo's founder & managing director, said on Monday: “We are confident about exponential growth of diagnostic services in India and overseas for SRL.” The private equity firm that has over $365 million under management , is currently investing from its third fund. In its draft prospectus filed with market regulator Sebi, SRL said it was looking to issue around 28 million shares in the public issue, including shares to be sold in a pre-IPO deal.
At Rs 189 a share, the company would be valued at around Rs 1,500 crore post its public offer. Last week, Singh brothers-promoted listed company Fortis Healthcare (India) said it will buy 86% stake in privately-held SRL for an undisclosed amount. It will appoint an independent valuer to arrive at SRL's valuation , Fortis said in a release. If Fortis Healthcare (India) also pays out Rs 189 a share, it will have to shell out around Rs 842 crore to its own promoters to buy majority in SRL.
Source: Economic Times