ICICI Venture buys minority stake in Metropolis for Rs 35 crore
Mumbai, May 4: ICICI Venture and Metropolis Health Services Ltd (MHSL) today jointly announced a significant minority stake sale in MHSL for Rs 35 crore to fund the expansion of the company's geographical reach and entry into related areas of business.
''MHSL has primarily grown through internal accruals, but as a company we have extremely aggressive plans for the future, and felt that we could grow faster with a quick infusion of funds,'' MHSL Chairman Sushil Shah said.
''ICICI Venture bought the minority stake in MHSL because, we believe that the healthcare sector in Asia and specifically India is on the verge of witnessing a growth trajectory,'' said Mrs Renuka Ramnath, CEO&MD, ICICI Venture.
The stake sale in MHSL was a precursor to the company going for an initial public offer, the company agreed but didn't reveal a definite time frame.
''Our Investment in Metrolpolis is an opportunity to leverage the rapid growth in the healthcare sector and we believe that Metropolis is strongly poised to be leader in the Indian path lab industry and has all the makings of significant player in Asia,'' said Mr Aluri Srinivasa Rao, Director-Investments, ICICI Venture.
MHSL, a pioneer in the referal laboratory concept and was founded in 1981, has grown into a corporate chain with 17 laboratories, 200 franchisees and own collection centres and caters to the needs of more than 3,000 small labs, nursing homes and hospitals and over 10,000 consultants across India and abroad.
MHSL earned revenue worth approximately Rs 70 crore in the last fiscal and plans to invest Rs 100 crore in expansion of the company.
MHSL, which has strategic partnership in healthcare cenres in Seychelles, Sri Lanka and UAE, processes more than five million samples in a year.