Fortis Healthcare has announced plans to acquire a 31% stake in its diagnostic arm, Agilus Diagnostics, for Rs17.8bn ($211.99m).  

This transaction places Agilus's valuation at Rs57bn.  

The current stakeholders of the company, comprising private equity (PE) companies, are divesting their shares by exercising a put option. 

NYLIM Jacob Ballas India Fund III (NJBIF) has already sent a notification to Fortis regarding a 15.86% stake valued at Rs9.05bn.  

Fortis is anticipating similar communications from the other investors, including International Finance Corporation (IFC) and Resurgence PE Investments, by 13 August. 

In a stock exchange filing, Fortis disclosed that the three private equity investors hold exit rights for their shares in Agilus, which includes a put option exercisable by 13 August, based on the fair market value, as outlined in the shareholder agreement from 12 June 2012. 

Fortis has already received a letter on 7 August from NJBIF regarding the put option for 12.43 million shares, representing a 15.86% stake in Agilus, for Rs9.05bn.  

The healthcare company is now evaluating the necessary steps to meet its obligations under the agreement of the shareholders, in compliance with applicable laws. 

As of 31 March 2023, Agilus operated a network of 413 laboratories, with 43 accredited by the National Accreditation Board for Testing and Calibration Laboratories.  

Agilus has a significant presence in India, with one Global Reference Laboratory in Mumbai, five regional reference labs, and coverage extending to more than 1,000 towns and cities across 25 states and five union territories. 

Business Standard noted that the latest deal, valuing Agilus at 20 times its FY26 expected enterprise value (EV) to its earnings before interest, taxes, depreciation, amortisation (EBITDA), reflects the strong growth prospects of the diagnostic sector.  

Agilus reported net revenues of Rs3.09bn in Q1 FY25, with an EBITDA of Rs555m and an 18% margin.