Newberg Diagnostics to eye $350 million India IPO in 2026

Newberg Diagnostics Pvt. It is said to be planning an initial public offering that could raise about $350 million for the Indian clinical laboratory-testing chain, according to people familiar with the matter, adding to the flurry of deals in the country’s hot IPO market.
The Chennai-based company is in active discussions with investment bankers for an IPO and is targeting a listing next year, the people said, asking not to be identified as the information is private.

Its founder, GSK Valu, which also owns other health care ventures, is planning to list medical device supplier Trivitron Healthcare and eyecare chain Maxivision Eye Hospitals after Newburgh, the people said. Discussions are still ongoing and details of the IPO plans may change, they added.

“We are actively evaluating several options” for the development of Newberg and other group companies, Valu, chairman of Newberg, Trivitron and Maxivision, said in an emailed response to Bloomberg News. “IPOs are one possible route,” he said.

According to Velu, “In the coming months, we will continue discussions with key stakeholders and consultants to determine the best structure for the three companies.”

Newberg’s listing comes as the Indian diagnostics market is expected to grow 9.2% annually to $26.7 billion by 2033 due to the growing prevalence of chronic diseases in a country with over 1.4 billion people, according to the IMARC Group. It will join a wave of recent IPOs tapping into the growing appetite for startup investments in the world’s fastest-growing major economy, particularly among domestic institutional and retail investors.

The rally came as Indian public offerings generated a weighted average return of 15% this year, beating the 8.4% advance in the NSE Nifty 50 index. Still, nearly half of the nation’s major and junior board listings are underwater, data compiled by Bloomberg show.

Newberg, which was founded in 2017, is present in more than 250 cities across the country, as well as in the United Arab Emirates, the US and South Africa, according to its website. The chain also offers genomics testing in its other focus areas, including hemato-oncology, histopathology, wellness programs and disease management programs for rare diseases.

The firm raised around Rs 9.4 billion from Kotak Alternative Asset Managers Ltd earlier this year. At the time, Newburgh founder Valu said in a statement that the company would use the funding to improve capabilities in personalized medicine and integrated diagnostics, as well as to “expand our footprint inorganically across the country.”