[image: Sequoia to Sell 15% Stake in Dr Lal
PathLabs]<http://www.dealcurry.com/20100524-Sequoia-to-Sell-15-Stake-in-Dr-Lal-PathLabs.htm>

Venture Capital firm, *Sequoia Capital* has put 15% of its 30% stake up for
sale in *Dr Lal PathLabs*, one of the country’s largest diagnostics and
pathology services chain, at around Rs. 120 Cr, thus valuing Dr Lal PathLabs
at Rs 800 Cr. It plans to sell the remaining stake at the time of Dr Lal
PathLabs IPO, which is expected over the next 1-2 years.

Sequoia Capital had acquired close to a third of  Dr Lal Pathlab for Rs 50
Cr in 2005 in two tranches from a fund established in 2000.

The exact reason for stake sale is not known but might be to rejig its funds
portfolio.

Established in 1949 by Late Dr. (Major) S.K. Lal, Dr Lal PathLabs runs over
60 laboratories across the country with over 1,000 employees.

The domestic diagnostics market is worth over $1 billion and is growing at
15-20% every year. It is dominated by standalone regional players while
organised chains hold 5-10% of the market share.
 Transaction Note

This year, Sequoia Capital sold off its 11.65% Stake in *Manappuram General
Finance & Leasing Ltd* for Rs 300 Cr through open market transactions
through *Sequoia Capital India Growth Investments* and also exited its
investment in *Times Internet Limited* by selling its stake to the company
itself.

Some of the Investments of Sequoia capital this year includes:
$5mn in *Druva Software*.
Investment in *Star Health and Allied Insurance Company*.
Stake increase in *eClerx Services Ltd* by 2.96% to 9.7%.
Plans to acquire 9.4% stake in *Credit Analysis and Research Ltd (CARE)*.

Last year in November, *Super Religare Laboratories* (formerly SRL Ranbaxy),
India’s largest pathology laboratory, planned an IPO to raise upto Rs 200 cr
by diluting 15-20%.


-- 
Regards

Hardik Shah

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