According to two persons familiar with the matter, billionaire Gautam Adani and Apollo Hospitals Enterprise Ltd, the largest operator of hospitals in the country, are reviewing bids to purchase up a majority stake in diagnostic chain Metropolis Healthcare Ltd. They went on to say that the size of the deal might be at least $1 billion (7,765 crores), taking into consideration the market capitalization of Metropolis and its activities across the country.
According to a story from Mint that was published one month ago, the Adani Group is preparing to make a massive entry into the healthcare industry. It is considering acquisitions of significant hospitals, diagnostic networks, and traditional and online pharmacies. It has been reported that the company has set aside up to $4 billion for the business to establish a presence in the healthcare industry. Currently, the organization is holding discussions with investors and lenders to formulate a long-term financial plan. A spokesman for the city of Metropolis declined to comment on the latest development. Email enquiries submitted to Adani Group and Apollo Hospitals remained unanswered as of the time this story was published.
The Adani Group is one of India’s most profitable and prominent corporate organizations. Its annual revenues are more than $20 billion, making it one of the most successful businesses in the world. It operates in various industries, including airports, the food processing industry, the infrastructure industry, and the renewable energy industry, in addition to other sectors.
In the 1980s, Metropolis started as a single lab, and in 2005, ICICI Venture, a private equity firm, gave the company its first external financing of 35 crores. At that time, Metropolis was still a single lab. Following this event, private equity firm Warburg Pincus made an additional contribution of $85 million, making it possible for ICICI Venture to complete its withdrawal successfully.
With the assistance of KKR India, the founding Shah family was able to repurchase a 27 per cent ownership in Warburg Pincus in 2015. The transaction was completed in 2015 and cost 550 crores. Later in 2015, the renowned investment firm Carlyle joined the company after the private equity firm won a contentious board struggle to acquire the share in the business previously held by the co-promoter GSK Velu. The pathology chain has locations in 19 of India’s states, with most of its employees concentrated in its western and southern areas.
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