Mumbai: Diagnostics firm Dr. Lal PathLabs Ltd, which is backed by private equity funds Westbridge Capital Partners and TA Associates, on Monday said it will launch its initial public offering (IPO) on 8 December. The offer will close on 10 December.

Dr. Lal Pathlabs plans to raise 632 crore from its IPO at the upper end of a price band of 540-550 per share. The firm is looking to raise the funds at a valuation of around 4,545 crore, at the upper end. It is offering a discount of 15 for retail investors.

The diagnostics firm will be the first of several healthcare firms expected to hit the primary market in the next few months.

Pharmaceuticals firm Alkem Laboratories Ltd is expected to launch its IPO around the same time as Dr.Lal Pathlabs. Dr.Devi Shetty led Narayana Hrudyalaya is also expected to launch its IPO in December, but the firm is yet to receive the approval of the Securities and Exchange Board of India for its issuance. Oncology firm HealthCare Global Enterprises Ltd too has received Sebi approval and is expected to launch its IPO in January.

Other firms such as Aster DM Healthcare and diagnostics firm Thyrocare Technologies Ltd are also planning initial share sales, according to various media reports.

Dr Lal Pathlabs’ IPO is a complete offer for sale and the firm is not raising any primary capital for its business. Westbridge and TA Associates will be selling part of their stakes through the IPO.

The firm, which was founded in 1949, reported a revenue of 662.5 crore in 2014-15 and a profit of 95 crore. The company’s revenue has grown at a compounded annual growth rate of 20.7% over the last three financial years.

The diagnostics chain has a network of 172 laboratories and 1,554 collection centres across the country. “Going ahead, we plan to expand through a cluster approach. We will deepen our presence in North India. We also plan to scale up in the east and we will be setting up a reference lab in Kolkata for the same, while in the south and west, we have identified select cities where we want to expand our presence," said Dr Om Manchanda, chief executive at Dr Lal Pathlabs Ltd.

Kotak Mahindra Capital and Citigroup Global Markets India are managing the IPO for the firm.

So far this year, 18 firms have raised around 11,000 crore through the IPO route, according to data from Prime Database, a primary market data tracker.

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