Dr Lal PathLabs fixes IPO price band at Rs 540-550

Diagnostic chain Dr Lal PathLabs today fixed price band at Rs 540-550 for its initial public offer (IPO) which will hit the capital market on December 8.
The IPO, which would close on December 10, would be made through an offer of sale of up to 1.16 crore equity shares representing 14.04 per cent stake in the company by promoters and other existing shareholders.
The company has fixed the price band from Rs 540 to Rs 550 per equity share. At the lower price band, the company would raise Rs 626 crore and would garner Rs 638 crore at the upper stock price.

Those participating in the share sale include Dr Lal PathLabs promoter and CMD Arvind Lal, Vandana Lal as well as Wagner Ltd, Westbridge Crossover Fund and Sanjeevini Investment Holdings Ltd.
All proceeds from the offer would go to promoters and investors. The company said it may offer a discount of up to Rs 15 on the offer price.
"The company expects that listing of the equity shares will enhance our visibility and brand and provide liquidity to its existing shareholders," Dr Lal PathLabs CEO Om Manchanda told reporters here.

According to Manchanda, with Rs 235 crore cash on books, the company is well-positioned to leverage upon one of the fastest-growing segments of the Indian healthcare industry.

The company plans to expand its presence in central and eastern region of the country and aims to come up with with national reference laboratories in Kolkata and Lucknow similar to one in Delhi, Manchanda said.
As on September 30, 2015, the firm had 171 clinical laboratories, 1,554 patient service centres and over 7,000 pick up points.
Its revenue rose 20 per cent to Rs 662.5 crore, while the profits rose 30.7 per cent to nearly Rs 95 crore in the last fiscal from fiscal 2013.
In the six months ended September 30, 2015, the company reported a revenue of Rs 407 crore.

Kotak Mahindra Capital and Citigroup Global Markets India are the book running lead managers for the IPO.