The shares of Metropolis Healthcare Ltd. have halved in value since the start of 2022. Concerns over consolidation led by intensified competition and a broader sell-off in the technology stocks dragged the price down by 55% over the last five months. It was trading for ₹ 1,546 as of 12:35 IST.
The diagnostics chain operator is in talks with renowned players for a stake sale to onboard strategic partners for future growth. Several companies such as Amazon, Flipkart, Adani Group, and Apollo Hospitals have shown genuine interest in acquiring minority and majority ownership in the company. Not only this, discussions with global private equity giants including Barings, Blackstone, KKR & Co. and TPG are also underway.
The company operates more than 3,000 diagnostics as well as pathology facilities in Africa and India. During the pandemic, it experienced massive growth as customers took the services of branded healthcare operators for various scans and tests. The chain came into existence in 1981 and is currently being led by Ameera Shah, the daughter of the founder Sushil Shah.
With a number of interested participants, the share price may see positive fluctuations over the prospects of an impending bidding war. This may bode well for the investors of the Mumbai headquartered company who have seen gains of only 75.68% to date from its April 2019 IPO listing price.
Billionaire ace investor and the founder of DMart, Radhakishan Damani is one of the key shareholders in the company.
Analysts at ICICI Securities have maintained a buy rating on the stock with a price of ₹ 2,187 per share. Edelweiss Securities sees a 55% upside with a target price of ₹ 2,402.
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