Thyrocare Technologies IPO to hit on April 27

Diagnostics company Thyrocare Technologies will hit the capital markets on April 27 to raise funds through an Initial Public Offer (IPO) to raise Rs 452-479 crore by selling over 1.07 crore shares at a price band of Rs 420-446 a share.

The issue is entirely 100 per cent offer for sale and by CX Partners, which holds 22 per cent stake in the company and will be selling 19 per cent. While promoters who hold 65 per cent will be selling 1 per cent, which translates to a total of 20 per cent stake in the company, being put up for sale. Samara Capital holds 2.25 per cent, Norwest Venture Partners holds 10 per cent and ICICI's Emerging India Fund holds 2.25 per cent. These three investors will not be exiting through the IPO.

Company Background:

Thyrocare Technologies is one of the leading pan-India diagnostic chains and has strong presence in more than 2000 cities / towns in India and internationally. As of February 2016, the company had a network of 1,041 authorised service providers, comprised of 687 Thyrocare Aggregators (TAGs) and 354 Thyrocare Service Providers (TSPs) spread across 466 cities, 24 states and one union territory.

Thyrocare operates with a Centralised Processing Laboratory (CPL) in Mumbai - India for esoteric tests; and Regional Processing Laboratories in major metro cities of India and other parts of Asia. Laboratories process over 30,000 samples and above 1 lakh investigations every day. Its profile of tests includes 17 profiles of tests administered under the “Aarogyam” brand, which offers patients a suite of wellness and preventive health care tests. Through its wholly owned subsidiary, Nuclear Healthcare Limited, they operate a network of molecular imaging centres in New Delhi, Navi Mumbai and Hyderabad, focused on early and effective cancer monitoring.

Financial Front:

The Company posted Compound Annual Growth Rate (CAGR) related to revenue, at over 23 per cent from FY11 to Rs 187 crore in FY15; and Rs 174 crore in the first nine months of FY16. The earnings (EBITDA) CAGR of nearly 20 per cent has resulted in operating profits of Rs 80 crore in FY15; and Rs 76.21 crore in the first nine months of FY16. Bottom-line grew by CAGR of 15.66 per cent at Rs 44.43 crore in FY15; and Rs 40 crore in the first nine months of FY16. 

Last year, several healthcare firms like Alkem Laboratories, Dr Lal PathLabs and Narayana Hrudayalaya had hit the capital market.