The Chennai-based diagnostics chain, which ranks amongst the largest in southern India, is majority-owned by private equity firms Peepul Capital and Siguler Guff. Homegrown Peepul Capital manages $700 million in investments. US-based Siguler Guff has $15 billion under management.
The National Company Law Tribunal had admitted Medall Healthcare for insolvency proceedings on May 2 after a creditor of the company approached the court claiming it was unable to realise payments despite repeated requests to the company.
“These are routine matters. The outstanding pertained to one of our franchisees. The case has been withdrawn,” a Medall executive told ET when contacted.
The diagnostics chain operates 185 labs and was an acquisition target as recently as May 2019 for China’s Fosun Healthcare, which had valued the company at ₹2,000 crore at the time. The acquisition did not take place. Warburg Pincus had also evaluated an investment in the company in the past.
NCLT had appointed Venkatraman Subramanian as the interim resolution professional of the company to administer its insolvency proceedings. However, he will not be taking charge of the company’s affairs after the settlement.
Medall was founded by serial entrepreneur Raju Venkatraman.
Unlike other pathology chains that offer only blood-based sample testing, Medall derives a substantial portion of its revenues from radiology services such as scans and MRI’s.