Healthcare conglomerate Fortis is looking to list its Diagnostic Arm Agilus (formerly SRL Diagnostics). The impending IPO is will reportedly seek a valuation of Rs. 2000 Crore, marking a defining step in Agilus’ journey.

A decade after Fortis Healthcare’s strategic acquisition of Super Religare Laboratories (SRL) in 2011, the subsidiary was rebranded as Agilus. Fortis claims that Agilus is the country’s largest chain of diagnostic laboratories in terms of geographic presence.

The recent endorsement of Agilus’ spin-off by the Fortis board underscores the strategicdirection set forth by the healthcare conglomerate. This move is poised to provide an exit avenue for private institutional investors, in addition to strategically positioning Agilus for its forthcoming IPO.

The diagnostics sector of the Indian stock market has witnessed the triumphant debuts of diagnostic entities such as Dr Lal Pathlabs, Metropolis Healthcare, Vijaya Diagnostic Centre, and Krsnaa Diagnostics Ltd, over the past two decades.

Navigating through the intricate currents of the Indian stock market, Agilus is primed to embark on its IPO journey. The Indian markets have displayed robust returns so far in 2023, though IPOs have encountered a somewhat cautious reception. While many listings were oversubscribed, some stocks are presently trading below their listing prices. Despite these trends, the small cap sector has seen considerable activity, primarily driven by recently listed small-cap companies.

Generally, it is not advisable for retail investors to invest in the IPO market due to the high intensity of the sales effort by the financial services industry and the resulting full prices (on average). This article is not an endorsement of any sort and does not constitute any advice. Investors are asked to conduct their own due diligence before investing.