Neuberg Diagnostics is in negotiations with a coalition of investors, including 360One funds and overseas investor M&G Investments, to raise up to $100 million, Moneycontrol reported on Monday, citing sources. The news source previously stated that the business has hired investment bank o3 Capital to assist Neuberg in raising financing from private investors.

According to the article, the business would utilize the funds from this investment round before its initial public offering (IPO) to strengthen its merger and acquisition (M&A) bid, with the goal of becoming one of India's largest diagnostic chains before reaching Dalal Street next year. The firm is supported by GSK Velu, who previously invested in Metropolis Healthcare, a diagnostics network.

GSK Velu allegedly sold his 36.5% share in Metropolis Healthcare to private investor Carlyle in 2015. The promoter also has a share in Trivitron Healthcare and invests in the Tamil Nadu-focused hospital chain Kauvery Hospital.

360One supervised a fund that invested roughly $70 million in Kauvery Hospital in March 2023. Murugappa Group's TI Clean Mobility, a developer of three-wheeler electric vehicles, plans to raise ₹310 crore from M&G Investments in June 2024, according to the report.

M&G also announced in 2023 that it will invest $75 million in the Vivriti India Retail Asset Fund, which aims to expand and improve access to finance for underserved small and medium-sized enterprises (SMEs) and millions of low-income households across India, with a focus on women-owned SMEs.

According to the research, Neuberg is one of India's leading diagnostic service providers, with operations in the UAE, South Africa, and the United States. The chain offers 5,000 pathological examinations and health exams ranging from ₹1,000 to INR 8,500. Every year, the firm allegedly conducts over 20 million tests in 33 facilities in India and internationally.

The corporation is preparing for its upcoming IPO. According to the article, the Neuberg Supratech Reference Laboratory in Ahmedabad and the Neuberg Anand Reference Laboratory in Bengaluru were amalgamated with the parent business last year to streamline operations. The firm also created a 50:50 joint venture (JV) with Pulse Diagnostics, a diagnostic chain located in Kolkata, to increase its presence in East India.

Deals in diagnostics:

In 2021, Dr. Lal PathLabs acquired Suburban Diagnostics for ₹925 crore in an all-cash transaction.

Suraksha Diagnostic Pvt Ltd, situated in West Bengal, has filed a draft red herring prospectus with the Securities and Exchange Board of India to raise approximately $100 million through an initial public offering. According to the article, OrbiMed, the chain's private investor, plans to sell a major portion of its stock in a public offering.