MUMBAI: Neuberg Diagnostics said it plans to file a draft red herring prospectus (DRHP) for its proposed initial public offering (IPO) in the second half of this fiscal year. The Chennai-based diagnostics chain said it has appointed commercial bankers and is seeking to consolidate its joint venture companies into a single entity in anticipation of the IPO.
The company said it was still working with bankers on the amount of funds it would raise.
Besides the chairman GSK Velu, the other founding members of Neuberg Diagnostics are Anand Diagnostic Laboratory (Bengaluru), Supratech Micropath (Ahmedabad), Ehrlich Laboratory (Chennai), Global Labs (South Africa) and Minerva Diagnostics (Dubai). Velu told ET in an interview that the company plans to use proceeds from the IPO to expand in India and the US, with a focus on high-end molecular diagnostics, cytogenetics, hematology and genomic testing.
“Routine testing currently accounts for about four-fifths of our sales. In three to five years, a significant part of our sales will be generated by new generation tests,” said Velu.
Neuberg Diagnostics reported sales of 1₹,000 crore for 2021-22, of which around 30% came from Covid-19 testing. Velu said the company expects to maintain sales levels this fiscal year even as Covid-19 testing has fallen significantly.
He said the company will soon announce an expansion plan in Mumbai, where it plans to open at least three laboratories and collection touchpoints with an investment of around £150m.
Comments are closed.