Dr Lal PathLabs gets Sebi's approval for IPO

Company hopes to raise funds through IPO in next one or two months

Leading diagnostic chain, Dr Lal PathLabs, which has received Sebi's approval to raise funds, is set to launch its initial public offering (IPO) soon.

The company had filed its Draft Red Herring Prospectus (DRHP) with Sebi in September for the IPO wherein the promoters and other existing shareholders will collectively sell 1.16 crore shares of the company.

Dr Lal PathLabs CEO, Om Manchanda, said, "The Securities and Exchange Board of India (Sebi) has cleared the proposed initial share sale. We hope to raise funds through IPO in next one or two months."

The main promoter group plans to divest five percent, while other investors such as Wagner Ltd and Westbridge Crossover Fund will divest 9.1 percent stake.

As per the DRHP filed with Sebi, the IPO would be made through an offer for sale and the proceeds would be remitted to the respective promoters and other investors.

Well-positioned in the Indian healthcare industry, the diagnostic business is estimated at USD 6 billion and is growing at 16-17 percent per annum.

The company had clocked a turnover of Rs. 662.5 crore and collected 21.8 million samples from 9.9 million customers in financial year 2015.