SRL Ranbaxy Plans IPO

SRL Ranbaxy Ltd plans to raise Rs 2-2.5 billion through an initial public offer of shares by September, a senior company official said on Wednesday.

SRL Ranbaxy, which operates a chain of pathology laboratories across India, is also in talks to sell up to 20 per cent stake to private equity firms ahead of the IPO, the official said on condition of anonymity.

"The meetings are on, we hope to close that in a month's time," the official said referring to the pre-IPO sale. The proceeds from the issue will be used to add to its network of about 35 laboratories across India, he added.

The company plans to have a network of 100 such labs in a few years. SRL is controlled by the promoters of Ranbaxy Laboratories Ltd.

Last May, Fortis Healthcare, another company controlled by the Ranbaxy promoters, went public with a Rs 4.97-billion IPO. This was followed by the listing of financial services arm, Religare Enterprises in November.

Indian companies are expected to raise up to $15.8 billion from new listings this year, nearly doubling from last year's record of $8.3 billion, according to Thomson Financial data.