Metropolis Healthcare IPO Review and List of anchor investors

Metropolis Healthcare, a diagnostics company, has a presence across 19 states, with operational network spread across 197 cities in India. The company offers a range of clinical laboratory tests and profiles used for prediction, early detection, diagnostic screening and confirmation and/or monitoring of the disease.

During the nine months period ending December 31, 2018, company conducted approximately 12.3 million tests from approximately 6.6 million patient visits as compared to approximately 16 million tests from approximately 7.7 million patient visits during the financial year 2018.

Moreover, the company has shown good revenue growth in the last 5 years. It is a debt free company.

The company offered a broad range of approximately 3,487 clinical laboratory tests and 530 profiles, as of December 2018.

metropolis

Metropolis Healthcare on Tuesday raised ₹530 crore by selling shares to anchor investors ahead of its initial share-sale. The company allotted 60,23,293 equity shares to 26 anchor investors at ₹880 per unit. Among the anchor investors are Small Cap World Fund, Fundsmith Emerging Equities Trust, Sundaram Mutual Fund, UTI Equity Fund, Edelweiss Crossover Opportunities Fund.

List of anchor investors :

Download (PDF, 1.02MB)

 IPO Dates & Price Band:

  • IPO Open: 03-April-2019
  • IPO Close: 05-April-2019
  • IPO Size: Approx ₹1204 Crore
  • Face Value: ₹2 Per Equity Share
  • Price Band: ₹877 to ₹880 Per Share
  • Listing on: BSE & NSE
  • Retail Portion: 10%
  • QIB Portion: 75%
  • HNI Portion: 15%
  • Equity: 15,269,684 Shares

Market Lot:

  • Shares: Apply for 17 Shares (Minimum Lot Size)
  • Amount: ₹14,960

IPO Allotment & Listing:

  • Basis of Allotment: 10-April-2019
  • Refunds: 11-April-2019
  • Credit to demat accounts: 12-April-2019
  • Listing: 15-April-2019

Lead managers:

JM Financial, Credit Suisse, Goldman Sachs, HDFC Bank and Kotak Mahindra Capital are the lead managers to the offer.

Shareholder of the company:

shareholders

3 lakh shares are reserved for employees. One of the promoters, Sushil Kanubhai Shah, will offload 63 lakh shares, while investor CA Lotus Investments, part of Carlyle Group, will sell 74 lakh shares through the IPO.

Object of the Issue:

1) to achieve the benefits of listing the Equity Shares on the Stock Exchanges and

2) for the Offer for Sale.

Overview of Indian Healthcare Market:

The size of the Indian healthcare industry, in revenue terms, was USD 125 billion in the financial year 2015,which is estimated to have increased to USD 171 million by the financial year 2017. The healthcare industry is expected to grow at a CAGR of 16.9% from USD 125 billion in the financial year 2015 to USD 273 billion in the financial year 2020. India’s healthcare market is expected to be among the top three healthcare markets globally, in terms of incremental growth, by the financial year 2020.

Our Competitive Strengths

One of the leading diagnostics companies in India which is well positioned to leverage the expected growth in the Indian diagnostics industry.

Widespread operational network, young patient touch point network and asset light growth of service network

Comprehensive test menu with wide range of clinical laboratory tests and profiles

Strong and established brand with a focus on quality and customer service

Robust Information Technology Infrastructure with Focus on Improving Efficiency

Established track record of successful acquisition and integration in India and overseas

Experienced Senior Management Team and Qualified Operational Personnel

Our Strategy

Continue to Focus on Organic Growth Initiatives to Expand Our Reach

Continue Our Focus on Providing Quality Tests and Services

Focus on the Expansion of Our Service Network

Focus on Increasing our Business from Individual Patients

Pursue New Avenues of Growth

Focus on Consolidation Opportunities in a Largely Unorganized Diagnostic Sector

Financial:

From financial year 2016 to financial year 2018, revenue from operations grew from Rs 475.47 crore to Rs 643.57 crore, representing a CAGR of 16.3 percent and profit for the year grew from Rs 81.95 crore to Rs 109.75 crore, representing a CAGR of 15.7 percent.

financial details

3 lakh shares are reserved for employees. One of the promoters, Sushil Kanubhai Shah, will offload 63 lakh shares, while investor CA Lotus Investments, part of Carlyle Group, will sell 74 lakh shares through the IPO.

Object of the Issue:

1) to achieve the benefits of listing the Equity Shares on the Stock Exchanges and

2) for the Offer for Sale.

Overview of Indian Healthcare Market:

The size of the Indian healthcare industry, in revenue terms, was USD 125 billion in the financial year 2015,which is estimated to have increased to USD 171 million by the financial year 2017. The healthcare industry is expected to grow at a CAGR of 16.9% from USD 125 billion in the financial year 2015 to USD 273 billion in the financial year 2020. India’s healthcare market is expected to be among the top three healthcare markets globally, in terms of incremental growth, by the financial year 2020.

Our Competitive Strengths

One of the leading diagnostics companies in India which is well positioned to leverage the expected growth in the Indian diagnostics industry.

Widespread operational network, young patient touch point network and asset light growth of service network

Comprehensive test menu with wide range of clinical laboratory tests and profiles

Strong and established brand with a focus on quality and customer service

Robust Information Technology Infrastructure with Focus on Improving Efficiency

Established track record of successful acquisition and integration in India and overseas

Experienced Senior Management Team and Qualified Operational Personnel

Our Strategy

Continue to Focus on Organic Growth Initiatives to Expand Our Reach

Continue Our Focus on Providing Quality Tests and Services

Focus on the Expansion of Our Service Network

Focus on Increasing our Business from Individual Patients

Pursue New Avenues of Growth

Focus on Consolidation Opportunities in a Largely Unorganized Diagnostic Sector

Financial:

From financial year 2016 to financial year 2018, revenue from operations grew from Rs 475.47 crore to Rs 643.57 crore, representing a CAGR of 16.3 percent and profit for the year grew from Rs 81.95 crore to Rs 109.75 crore, representing a CAGR of 15.7 percent.

Peers:

Peers

Grey market premium:

Currently, Grey market premium is Rs. 60/- to 65/- and Kostak is Rs. 200/- to 250/-

DISCLAIMER:

No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on information published here.

 

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