Adani Group, Apollo Hospitals In Talks To Acquire Majority Stake In Metropolis Healthcare

Adani and Apollo’s deal with Metropolis could worth $1 billion or Rs 7,765 crore, given the market captalisation of the diagnostic chain and its operations, according to news reports

Adani Group has reportedly earmarked $4 billion for the business to gain a foothold in the healthcare sector.

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Adani Group’s Chairman Gautam Adani and India’s biggest hospital operators, Apollo Hospitals Enterprise, are jointly evaluating bids to acquire a majority stake in Metropolis Healthcare Ltd, according to a news report.

A report published in the Mint stated that Adani and Apollo’s deal with Metropolis could worth $1 billion or Rs 7,765 crore, given the market captalisation of the diagnostic chain and its operations.

This move comes as Adani Group’s, one of India’s largest business conglomerate, forays into the healthcare sector. As announced last month, the group is planning to buy large hospitals and diagnostic assets. In May, Adani Enterprises said it has incorporated a wholly-owned subsidiary, Adani Health Ventures (AHVL), for this purpose.

Adani Group has reportedly earmarked $4 billion for the business to gain a foothold in the healthcare sector.

The Adani Group, which has more than $20 billion in annual revenue, is also interested in entering the pharmacy sector, through both online and offline routes.

In the past 8 years, Adani Group has acquired 30 different entities in different sectors, including in power, green energy, infrastructure, airports, and food processing.

Metropolis Healthcare Ltd started operations in 1980s with just one lab. Later the diagnostic firm operates in 19 states across the country and became a diagnostic chain.

Shah family, the founding family of Metropolis, backed by KKR India, in 2015 bought back 27 per cent stake of Warburg Pincus for Rs 550 crore. The company brought marquee investor Carlyle later that year after the PE firm bought out its co-promoter GSK Velu’s stake in a board battle.

The company bagged its first external funding from ICICI Venture in 2005 of Rs 35 crore. Later, PE firm Warburg Pincus invested $85 million in the company, marking an exit for the ICICI Venture.