Metropolis tanks 27% in 1-mth on promoter stake sale buzz, latter clarifies

The promoters of Metropolis Healthcare on Monday after market hours clarified that they have no intention to exit the business.

Shares of Metropolis Healthcare (MHL) hit a fresh 52-week low of Rs 1,475, down nearly 2 per cent on the BSE in Tuesday’s intra-day trade. The stock has shed 7 per cent in the last two days on reports that the promoters of the healthcare services provider were planning to sell partial stake in the company.

In the past one month, the stock price of MHL has declined 27 per cent as compared to a 0.32 per cent decline in the S&P BSE Sensex. In the past six months, the stock has more-than-halved or down 55 per cent as against a 10 per cent decline in the benchmark index.

According to Economic Times report, GSK Velu, the founder of Trivitron Healthcare, is believed to be in talks with a bunch of investors, including two large private equity funds and half a dozen banking firms, to raise money to finance his bid for the diagnostics chain.

Last month, the Bloomberg had reported that MHL, a diagnostics chain operating in India and Africa, is looking to raise more than $300 million and bring onboard a strategic partner by selling a significant minority stake. CLICK HERE FOR FULL REPORT

However, Metropolis on Monday after market hours clarified that its promoters have no intention to exit the business.

“The company is continuously exploring various strategic options/investment opportunities. On account of which the company keeps receiving inbound interest from financial institutions and companies part of the healthcare eco-system for a potential minority stake purchase in MHL,” the company said in exchange filing.

"The company, its promoters and management team are committed to operating Metropolis Healthcare Ltd with the highest standards of medical science, stakeholder trust and customer engagement," the company said. 

The company further said that the promoters have no intention to exit the business and are in fact focused on strengthening the Metropolis Brand. Any step taken by the Promoters and Management Team will be in the view of long-term growth prospects of the company and in the best interest of all stakeholders, it added. READ MORE

Metropolis made its stock market debut on April 15, 2019. The company had raised Rs 1,204 crore by issuing shares at price of Rs 880 per share. The stock hit a record high of Rs 3,579 on December 30, 2021 and all-time low of Rs 904.85 on May 14, 2019.