Can IHH help SRL finally scratch its 10-year itch?

India’s largest diagnostics lab, and yet, a hand-me-down. Passed around from Ranbaxy to Religare to Fortis Healthcare, SRL Diagnostics is a paradox that has been tainted with the promoters’ reputation. And now, it’s ready for sale

Fortis has decided to hire Kotak Mahindra Bank to find buyers and get a PE exit from SRL Diagnostics

Other large diagnostic chains like Thyrocare and Metropolis raised money in the public market

But SRL can’t go for an IPO as it has higher expenses and lower profits than its peers

And it has a bigger problem—it's being associated with its promoters’ tainted reputation

There’s always that one kid on the playground waiting to be picked. The one kid who’s actually pretty good at most things, just not popular by association.

That one kid in healthcare today is the largest (by number of labs) Indian diagnostics chain, Super Religare or SRL diagnostics. It’s getting ready for sale.

But it hasn’t been able to find value in the public market.

SRL was founded in 1995 as a faction of Ranbaxy Laboratories—founded in 1961 by two brothers, Ranbir Singh and Gurbax. Ranbaxy was bought by their cousin, then passed down over two generations until 2008, when the family found an exit in a deal valued at $4.6 billion.

AUTHOR

Ruhi Kandhari

Ruhi writes on the impact of healthcare policies, trends in the healthcare sector and developments on the implementation of Electronic Health Records in India. She has an M. Sc. in Development Studies from the London School of Economics.

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