New Delhi, July 2 -- Super-speciality diagnostics chain Neuberg Diagnostics is in the advanced stages of picking up a controlling stake in a north India based diagnostic lab chain providing preventive health check-up services, according to two people close to the development.

Neuberg, backed by healthcare entrepreneur GSK Velu, has now emerged the frontrunner for a majority stake in Delhi-headquartered Mahajan Imaging & Labs, one of the persons mentioned above said.

The promoters of the firm are reluctant to sell 100% stake. However a deal is likely to be struck for a majority shareholding, the person said.

The deal size is likely to be upward of Rs 500 crore (around $52.5 million). The final contours of the deal however couldn't be immediately ascertained.

Email queries sent to Neuberg and Mahajan Imaging & Labs remained unanswered till the time of publishing this news article.

Mahajan Imaging & Labs, founded in 1999, currently has 11 centres with standalone centres in Dwarka, SDA, Defence Colony, Pusa Road, Gurugram and Bali Nagar in Delhi NCR, and embedded centres in hospitals including Fortis Hospitals in Vasant Kunj and Jaipur, and PSRI Hospital, according to its website.

Apart from routine clinical imaging and diagnostics, Mahajan Imaging & Labs is also involved in advanced clinical and applied research with university partners that include Massachusetts Institute of Technology (MIT), Boston, USA, Max Planck Institute, All India Institute of Medical Sciences, New Delhi and Indian Institute of Technology (IIT), Delhi, and leading global pharmaceutical and device manufacturing companies.

The decades old institution claims to have a history of bringing new technologies into the private sector in the country, for example, silent MRI, functional MRI, MR tractography, MR mammography, weight bearing standing MRI, dual energy spectral CT, CT coronary angiography, 4D ultrasound with tomography, PET-CT, CT-guided robotic biopsy, full field digital mammography, cone beam dental CT and DEXA bone densitometry, the site added.

As for Neuberg Diagnostics, which is planning to go public this year, operates a network of more than 10,000 touchpoints and over 250 labs in 250 cities. It claims to have a market leadership in Gujarat and Karnataka, and claims to be the second-largest genomics player in India with a leading position in newborn screening and reproductive genomics testing.

VCCircle had reported in December last year that Neuberg was also in the fray to acquire N.M Medicals, earlier known as Rahu Health and Medical Tourism Pvt. Ltd. N.M Medical provides radiology, cardiology, pathology and preventive health checkups across its 18 centres. It has 12 centres in Mumbai, and two each in Pune and Bengaluru.

In January last year, Neuberg had raised a private equity investment worth Rs 940 crore from Kotak Strategic Situations India Fund II. The capital was meant to support Neuberg's inorganic expansion strategy and to help scale up the Neuberg platform. .

Diagnostics space has lately been seeing multiple investors betting on various firms amid a rise in chronic ailments, increasing awareness for preventive health checkups and rising income levels.

Last month, VCCircle reported that the Burman family, promoters of fast-moving consumer goods (FMCG) conglomerate Dabur, was exploring the divestment of its diagnostics chain Oncquest Laboratories Ltd.

Recently, Redcliffe Labs acquired a diagnostic centre in Ajmer and a little earlier Chennai-headquartered radiology and pathology diagnostic chain Aarthi Scans Pvt Ltd was set to onboard ICICI Venture as an investor on its cap table, VCCircle had reported.

Earlier, VCCircle had reported that Morgan Stanley-backed Sterling Accuris Wellness Pvt Ltd was looking to raise a fresh round of equity capital. Also, North India-focussed House of Diagnostics Healthcare Pvt Ltd raised funding from 360 One Asset last month, while VCCircle reported in December that private equity firm Vixar, earlier known as Arpwood Partners, acquired a majority stake in Bengaluru-based dAlgnostiX Services Pvt Ltd.

Published by HT Digital Content Services with permission from VC Circle.