US based private equity (PE) firm, Warburg Pincus (Warburg) is to invest in Mumbai based Metropolis Healthcare Limited (Metropolis). India's largest diagnostic laboratories chain, Metropolis had received an earlier investment from ICICI Venture (ICICI). As part of this deal, Indian private equity firm ICICI Ventures has completely divested its holding in the company, which it had acquired in 2006. ICICI Venture had invested Rs.35 crore ($ 7.4 million) in Metropolis from its India Advantage Fund Series-1 in 2006. 

Warburg invested Rs. 395 crores ($ 85 million) to make it one of the largest PE deals in the healtcare segment. Metropolis which is engaged in the business of providing pathological laboratories services, managing hospital laboratories and conducting clinical trials will use the investment to pursue acquisitions as it looks to become a major player in the emerging markets.

Warburg was advised by Amarchand with Managing Partner Cyril Shroff and Private Equity Partner Ravindra Bandhakavi leading the team. Metropolis was advised by the Mumbai office of Desai and Diwanji. 

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