Thyrocare plans IPO in Feb to allow investors to exit

Valuation likely to be between Rs 1,800 crore and Rs 2,200 crore

Leading diagnostic laboratories player Thyrocare Technologies today said it is coming out with an IPO in February 2015 to allow its private equity fund an exit route.

"Private equity fund CX Partners has 27% stake, would dilute 25% and retain two per cent. Other two partners - NVP and ICICI Emerging funds - having 10% and 3% stakes, respectively, will retain their stake," Thyrocare Tech founder and Chief Executive Officer A Velumani told reporters here.

"We are looking at giving our investors an exit route through offer for sale. We are exploring an Initial Public Offering by February 2015 and are currently preparing ourselves for the process. It will be some time before we can appoint bankers," he said.

Commenting on valuation, Velumani said, the market will decide the valuation, which is likely to be between Rs 1,800 crore and Rs 2,200 crore.

The company has registered a turnover of Rs 160 crore and growing at 20% per annum, Velumani said.

Thyrocare Technologies has presence in more than 2,000 cities and towns in India. It has a focus on providing quality at affordable costs to laboratories and hospitals in India and other countries.

Commenting on overseas expansion plans, Velumani said it has centres in Bahrain and Bangladesh, and is now looking at expanding in BRICS (Brazil, Russia, India, China, South Africa) countries to provide cost effective solutions.

India's pathology testing market is estimated at Rs 40,000 crore per annum and has huge potential to grow, he said.

Meanwhile, the company today installed the world's longest lab automation track, 'Aptio', in Mumbai with technology from diagnostics division of Siemens Healthcare.

The installation at Thyrocare is 93.5 meter long, which is currently the longest in the world.

Various intelligent features in the solution will allow Thyrocare to perform approximately 200,000 tests per day involving both immunoassay and chemistry.

"Aptio is sleek, dynamic and intelligent automation solution, very ideal for high volume laboratory for pre- analytical, analytical and post-analytical needs. Our floor is more productive and least expensive now," Velumani said.

Sushant Kinra, Head - Diagnostics Division, Siemens Healthcare India, said that they have provided such solution to Malaysia, Singapore, Taiwan in the past.

"Aptio Automation represents our latest innovation and vision on how we can help laboratories keep pace in this challenging environment and address their most pressing business and clinical demands," he said.

Aptio is an adaptable solution that allows for a phased implementation to accommodate both current and future needs of medium-to-very-high-volume laboratories.

Out of Rs 12,000 crore business volume of Siemens in India, the diagnostics division, Siemens Healthcare India contributes around Rs 2,000 crore, Kinra said.