NEW DELHI: Apollo Health Street (AHS), the BPO arm of India’s largest healthcare company Apollo Group, is planning to float an IPO to repay its debt for its recent acquisition of US-based BPO Zavata for $170 million as well as fund future expansion plans.
Sources said the company is expected to go for a listing within 6-8 months. Industry sources said the company is assessing the market and the valuation of the company. “The board has given an in-principle approval to list the company in India but the time and other details have not been decided.
Part of the money raise from the market will be used to repay the debt of the company, “ a company source said Maxwell Mauritius, a wholly-owned subsidiary of Singapore-headquartered Temasek Holdings and One Equity Partners, the private equity arm of JP Morgan Chase have invested $7.5 million in the company. It is learnt that one or both of the PE investors could exit at the time of the IPO but this could not be independently verified.
AHS had recently acquired US-based BPO Zavata for $170 million. It had raised $120 million as debt to part finance the acquisition. Post acquisition, AHS will have a turnover of around $100 million.
AHS is one of the few players in the outsourcing industry which specialises in the healthcare sector and can draw on the domain expertise of the Apollo group of hospitals.
The company would continue to focus on the US market which has an outsourcing potential of around $75 billion. Last year, it had bought US-based Armanti Financial Services, for a consideration of $31 million.
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