Super Religare Laboratories files IPO papers

Diagnostics services provider Super Religare Laboratories (formerly SRL Ranbaxy) proposes to enter capital market with a public issue of up to 2.8 crore equity shares of face value of Rs 10 each. The issue shall constitute 35% of the fully diluted post-issue paid up capital of the company.

Company is going to consider a private placement (pre-IPO placement) of up to 80 lakh equity shares, aggregating up to Rs 160 crore .

Super Religare is one of the leading diagnostics services companies in India. The company had acquired Piramal Diagnostic Services Private Limited (PDSPL) in August 2010; with this acquisition - it has the largest market share (48%) in the organized sector in India, (according to ICRA Management Consulting Services Limited, Indian Diagnostics Services Market Report, January 2011.

The company intends to utilise the issue proceeds providing loan to the subsidiary, PDSPL for repayment of its existing debt; redemption of non-convertible debentures; redemption of non-cumulative redeemable preference shares issued by company and repayment of debt taken for the purpose of capital expenditure.

Promoters of the company are Malvinder Singh, Shivinder Singh, Malav Holdings Pvt Ltd, Shivi Holdings Pvt Ltd, Oscar Investments Limited and Maple Leaf Buildcon Pvt Ltd.

Promoters' shareholding will be reduced to 55.69% from 85.67% post issue.

Nomura Financial Advisory & Securities (INDIA) Pvt Ltd, Kotak Mahindra Capital Company Limited and Religare Capital Markets Limited are the book running lead managers to the issue.