The Chennai-based company is in active discussions with investment bankers for the IPO and is aiming for a listing next year, people said, asking not to be identified as the information is private.
Its founder, GSK Velu, who owns other health care ventures as well, is planning to list medical device supplier Trivitron Healthcare and eyecare chain Maxivision Eye Hospitals after Neuberg, people said. Discussions are still underway and details of the IPO plans may change, they added.
“We are actively evaluating several options” for the growth of Neuberg as well as other group companies, said Velu, chairman at Neuberg, Trivitron and Maxivision, in an emailed response to Bloomberg News. “An IPO is one potential avenue,” he said.
“In the coming months, we will continue discussions with key stakeholders and advisors to determine the best structure” for the three firms, according to Velu.
Neuberg’s listing comes as the Indian diagnostics market is expected to grow 9.2% annually to reach $26.7 billion by 2033 on rising prevalence of chronic diseases in the country with over 1.4 billion people, according to IMARC Group. It would join a wave of recent IPOs tapping into a growing appetite for startup investments in the world’s fastest-growing major economy, particularly among domestic institutional and retail investors.
The boom comes as Indian public offerings have generated a weighted average return of 15% this year, beating the 8.4% advance in the NSE Nifty 50 Index. Even so, nearly half of the listings across the nation’s main and junior boards are under water, data compiled by Bloomberg show.
Neuberg, which was founded in 2017, is present in over 250 cities in the country as well as in United Arab Emirates, the US, and South Africa, according to its website. The chain also provides genomics testing among its other focus areas, including haemato-oncology, histopathology, wellness programs and disease management programs for rare diseases.
The firm raised about 9.4 billion rupees earlier this year from Kotak Alternate Asset Managers Ltd. At the time, Neuberg founder Velu said in a statement the company would use those funds to improve capabilities in personalized medicine and integrated diagnostics, as well as to “inorganically expand our footprint across the country.”