Thyrocare IPO to open on 27 April


Thyrocare IPO will open for subscription on 27 April 2016, the company said in its red herring prospectus (RHP). The INR400 crore IPO will remain open till 29 April 2016. Through the public offer, promoters and existing shareholders will be selling some of their shares. As a result, the Navi Mumbai-based diagnostics firm will not get any IPO proceeds. While the price band of Thyrocare IPO is not yet revealed, existing shareholders plan to sell 1.07 crore shares through the public offer.

Among the selling shareholders in Thyrocare IPO are Agalia, A Velumani HUF, A Sundararaju HUF, and Anand Velumani. Promoters and promoter group own nearly 64% equity stake in Thyrocare Technologies while the rest is with private equity investors.

Important among external investors are CX Partners, Norwest Venture Partners (NVP) and Samara Capital. Out of the three, only CX Partners will be participating in Thyrocare IPO and plans to sell 1.02 crore shares. Through its Agalia investment vehicle, CX Partners holds 21% stake or 1.12 crore shares in Thyrocare with average cost of acquisition of INR110.67 per share. NVP and Samara Capital own 9.4% and 2% equity stake respectively but will not be participating in the IPO.

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Financial performance

Thyrocare Technologies is one of the most consistent diagnostics firms in India in terms of financial performance. As seen in the table below, the company has achieved consistent top line growth and profits have also increased in each of the last four years except in FY2014. Although profit margins of Thyrocare have come down after peaking in FY2013 amid increasing competition, absolute profits are still very attractive.

Thyrocare’s standalone financial performance (in INR crore)
  FY2011 FY2012 FY2013 FY2014 FY2015
Total revenue 81.2 114.1 139.9 156.5 187.0
Total expenses 43.5 62.1 74.1 87.6 117.5
Profit/(loss) after tax 24.8 34.9 56.8 46.1 48.4
Net margin (%) 30.5 30.6 40.6 29.5 25.9

Thyrocare IPO: Business background

Thyrocare is one of the leading pan-India diagnostic chains and conducts an array of medical diagnostic tests and profiles of tests that center on early detection and management of disorders and diseases. As of February 2016, the company offered 198 tests and 59 profiles of tests to detect a number of disorders, including thyroid disorders, growth disorders, metabolism disorders, auto-immunity, diabetes, anemia, cardiovascular disorders, infertility and various infectious diseases. Its profiles of tests include 16 profiles of tests administered under the “Aarogyam” brand, which offers patients a suite of wellness and preventive health care tests.

According to the latest count as of nine months ended December 2015, Thyrocare performed 159,350 tests daily through its network that comprises presence in more than 2000 cities and towns in India and internationally. Through its wholly owned subsidiary, Nueclear Healthcare Limited, Thyrocare operates a network of molecular imaging centers in New Delhi, Navi Mumbai and Hyderabad, focused on early and effective cancer monitoring.

We will release our analysis of Thyrocare IPO once the company reveals price band. Meanwhile, don’t forget to check our page on Thyrocare IPO to get all details about the IPO and to participate in a lively discussion.


  1. Wrong, the ipo opens between the dates 27 and 29 April, it is mentioned in the article.
    The grey market is positive on this ipo with good premium.


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