International Finance Corporation (IFC), the private sector investment arm of the World Bank Group, is investing up to $30 million into Avigo Capital and Sabre Capital-backed diagnostics firm Super Religare Laboratories (SRL). The company is raising money primarily to fuel its inorganic growth. The pathology market is currently 2.5 per cent of the overall healthcare delivery market. There are 40,000 independent path labs in the country and the industry is highly competitive and price-driven.
Two years back, SRL acquired Piramal Diagnostic Services Pvt Ltd for $128 million to strengthen its presence in the radiology services that also made it the biggest diagnostics chain in the country, ahead of firms like Dr Lal Pathlabs.
SRL has already sold its 86 per cent stake in SRL to the listed Fortis Healthcare (India). Fortis Healthcare acquired 74.59 per cent, held by the promoters in SRL, for Rs 803 crore.
SRL had also plans to use a portion of the proceeds of the public issue to repay/retire liabilities from the Piramal acquisition, as also the debt on its own book. The proposed PE funding is likely to take care of immediate funding needs.