India’s largest private hospitals operator Apollo Hospitals Enterprise and the Gautam Adani-led Adani Group and are looking at bids to purchase a majority share in diagnostics chain Metropolis Healthcare, Mint has reported.
The deal could be worth at least $1 billion, given Metropolis’ market cap and scale of operations, sources told Mint.
Moneycontrol could not independently verify the report.
The move marks the next step in Adani Group’s foray into healthcare and the conglomerate is said to have earmarked $4 billion to gain a foothold in the space, the report said.
Metropolis, Adani Group and Apollo Hospitals did not respond to queries, it added.
Metropolis is a diagnostics and pathology chain which started out with a single lab in the 1980s. It now has a presence across 19 states, predominantly in west and south India.
In the works
On May 19, Adani Group announced its entry into the healthcare sector, saying it incorporated a wholly owned subsidiary for healthcare-related services.
The subsidiary, Adani Health Ventures (AHVL), will carry out the business of healthcare-related activities, including the setting up of medical and diagnostic facilities, the company said in an exchange filing.
"Adani Enterprises Limited has incorporated a WOS namely, Adani Health Ventures Limited, on 17th May 2022, with an initial authorised and paid-up share capital of Rs 1,00,000 each to carry on the business of healthcare- related activities including, inter alia, setting up, running, administrating medical and diagnostic facilities, health aids, health tech-based facilities, research centers and to do all other allied and incidental activities in this regard," the filing said.
AHVL will commence its business operations "in due course", it added.
Also read: Adani to buy Holcim stake in Ambuja Cements and ACC for $10.5 billion
With over 30 acquisitions since 2014 in different verticals and businesses, Adani Group has grown at a scorching pace and is a dominant player in several sectors such as cement, ports, airports and power.
The healthcare sector, the latest on Adani's radar, is expected to grow exponentially in India. The industry has been growing at a compound annual growth rate (CAGR) of around 22 percent since 2016, according to a recent report released by the Niti Aayog, the government's think-tank. At this rate, it is expected to reach $372 billion in 2022, the report said.
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