Merging company

velu: GSK Velu in talks with investors, PEs and banks to buy Metropolis Healthcare

GSK Velu is considering a bid for , the company it once co-financed with the Shah family, seven years after selling its stake following a board battle, people familiar with the development said. Velu, the founder of Trivitron Healthcare, is said to be in talks with a group of investors, including two major private equity funds and half a dozen banking firms, to raise funds to fund his bid for the diagnostics channel.

Metropolis chief executive Ameera Shah and her family have launched a formal process to sell the developer’s majority stake and have reportedly hired investment bank Barclays to initiate a formal sale.

“Velu is definitely considering making an offer, although it remains unclear if it would be able to complete the transaction. It is definitely looking to make an offer for the asset if the Shah family pulls out of the deal completely. business,” a source close to Velu said. A few private equity funds including Warburg Pincus and TA Associates are also said to be exploring offers to buy Metropolis in a deal valued at around ₹7,800 crore.

Warburg Pincus is an American fund with a strong presence in the Indian healthcare sector. She was one of Metropolis’ shareholders with a 27% stake, which she acquired from ICICI Venture in 2010.

The Shah family bought out Warburg’s stake in 2015.

Warburg could also bid jointly with Velu, sources said.

Velu and Metropolis declined to comment, while Warburg Pincus and TA Associates did not respond to emails by press time Sunday.

Amazon, Walmart-owned Flipkart and Adani Group are also reportedly exploring deals for the healthcare chain.

Founded in 1980 by Sushil Shah, Metropolis is today a global chain of diagnostic companies, present in eight countries.

Chennai-based Velu, a serial healthcare entrepreneur, joined the Shahs in the late 1990s after merging his diagnostics business with Metropolis.