Warburg replaces ICICI stake in Metropolis Healthcare

Private equity firm Warburg Pincus is investing about $85 million (Rs 395 crore) in diagnostics laboratory chain Metropolis Healthcare, replacing ICICI Venture, which is exiting from the company.

ICICI Venture first invested in Metropolis with an initial Rs 35 crore from its India Advantage Fund Series-1 in 2006. The present deal involves a primary and secondary component and also includes additional capital that will be available to Metropolis to pursue acquisitions, said a press release from the company.

European private equity giant TA Associates was planning to buy the stake owned by ICICI Venture in Metropolis, reports had said earlier.

As reported in Business Standard, ICICI Venture is planning to sell off RFCL (formerly Ranbaxy Fine Chemicals) through an open bid process. ICICI Venture has invested in life sciences companies like Arch Pharmalabs, Malladi Drugs, I-Ven Pharma of Dr Reddy’s Labs, RFCL, Metropolis, Avesthagen, Biocon and Swiss Biosciences.