Mumbai: Diagnostics firm Thyrocare Technologies Ltd will launch a three-day initial public offering (IPO) on 27 April to raise as much as 480 crore, the company said on Wednesday. The firm has priced the offer in a band of 420-446 per share.

The entire public issue is an offer for sale (OFS) by existing private equity investors and the firm’s promoters.

CX Partners, through its subsidiary company Agalia Pvt. Ltd, has offered to sell about 90% of its holding. The Mauritius-based entity, which holds a stake of about 21%, is the second largest shareholder in the company.

Other private equity investors in the company—Norwest Venture Partners and Samara Capital—are not selling their stakes. Norwest and Samara hold 9.43% and 2%, respectively, in Thyrocare Technologies.

The Navi Mumbai-based operator of pathology laboratories filed its draft prospectus with the Securities and Exchange Board of India (Sebi) on 31 December 2015. It received approval on 24 February.

JM Financial Institutional Securities Ltd, Edelweiss Financial Services Ltd, and ICICI Securities Ltd are bankers to the public issue.

Thyrocare is a pan-India diagnostic chain, which conducts an array of medical diagnostic tests that center on early detection and management of health disorders.

The firm reported a profit of 48.4 crore on revenue of 187 crore for the financial year 2014-15, against a profit of 46.1 crore on revenue of 156.5 crore in the previous financial year.

Thyrocare was looking to list its shares last year, but the issue hit a roadblock after the company was found to be non-compliant with the Companies Act. The firm’s management requested clarification from Sebi in connection to the shares issued to about 51 people about 10 years ago, Mint reported on 26 May last year.

The Companies Act, 1956, did not allow an unlisted company to allot securities to more than 49 investors in a financial year. The clause was relaxed in the Companies Act, 2013, wherein the cap was increased to 200 investors.

Thyrocare’s public issue is the eighth IPO this calendar year. It is being launched at a time when secondary markets have risen 4.75% in the past six sessions. The BSE’s 30-share benchmark Sensex index has advanced more than 12% since mid-February, recovering half of the 23.55% fall from its all-time high of 30,024.74 in March 2015.

Seven firms have tapped primary markets to raise close to 3,200 crore since 1 January, according to Prime Database, which tracks share sales. Last year, 21 firms raised almost 13,600 crore through the IPO route, data showed.

Close