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Metropolis Healthcare's Rs 1,200-crore IPO opens on April 3

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Metropolis Healthcare's Rs 1,200-crore IPO opens on April 3

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Metropolis Healthcare's initial public offer (IPO) will open for subscription on April 3 and the diagnostics company is looking to fetch around Rs 1,200 crore. The price band is set at Rs 877 to Rs 880. Ameera Shah, MD of the company, spoke to CNBC-TV18 about the funding situation, expansion plans and capex.

Metropolis Healthcare's initial public offer (IPO) will open for subscription on April 3 and the diagnostics company is looking to fetch around Rs 1,200 crore. The price band is set at Rs 877 to Rs 880.

Ameera Shah, MD of the company, spoke to CNBC-TV18 about the funding situation, expansion plans and capex.
“As far as our expansion plans, as far as whatever small capex investments that we need to do for maintenance capex, we are able to create that from our own internal cash flow. So there is not a requirement for external funding. Only if we do a large acquisition, we may require additional cash but of course, we are a debt-free company, so we have the ability to raise debt on the balance sheet. Going forward, we have a lot of open channels for funding, so I am not too worried and for our existing expansion there is no worry,” Shah said.
Talking about the annual cash flow and expansion plans, Shah said, “Last year we generated about Rs 110-115 crore of free cash flow, a little bit more also. And usually, our maintenance capex is not more than Rs 10-20 crore a year. So usually we use the balance for smaller acquisitions. This is what we have been doing for the last many years. The company is prolific on acquisitions, we have the ability and the risk-taking appetite to do it. We hope to continue with that.”
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