Metropolis Healthcare Ltd., a diagnostics chain operating in India and Africa, is looking to raise more than $300 million and attract strategic partners by selling a large minority stake, according to people familiar with the matter.

Metropolis, which trades in Mumbai, has a market value of $1.1 billion, about half of what it was at the beginning of the year, they said they hired Barclays as an adviser. The deal, which could include the sale of primary and secondary shares by existing investors, including the managing director, could be worth more than $300 million.

Walmart Inc. retailer Flipkart and publicly-traded healthcare chain Apollo Hospitals Enterprise Ltd. are potential strategic investors in a nondisclosure agreement with Metropolis, one of the people said, while Amazon.com Inc has had preliminary discussions. Deals have also been signed with global funds including KKR & Co., TPG Inc. and Barings, while talks with Blackstone Inc. are ongoing, the person said.

Metropolis shares fell 3.1 per cent on Friday. They have halved since the start of the year due to a broader technical sell-off and concerns about increased competition.

Metropolis has more than 3,000 diagnostic centres and pathology laboratories in India and Africa. It has grown as consumers seek out brand operators to test and scan during the pandemic. The chain was founded in 1981 by Sushil Shah, whose daughter Ameera Shah took over the chain. Ameera Shah currently owns 50 per cent of the company and may sell some of her stake in a secondary deal that could increase the size of the deal, a person familiar with the discussions said.

The diagnostics chain has been targeted by the likes of Amazon and Walmart, which are adding healthcare products to increase their retail offerings in India. The nation of 1.4 billion is spending more on preventive health care such as testing, driven by chronic and lifestyle-related diseases and an ageing population.

Fierce competition is driving consolidation, with online pharmacy startup PharmEasy buying a majority stake in publicly traded diagnostics chain Thyrocare Technologies last year for $612 million. Metropolis bought diagnostics chain Hitech Diagnostics Centre last year for 636 million rupees ($82 million). To remain competitive, diagnostic companies need to invest heavily in newer technologies and equipment and enhance their online offerings.

Metropolis said it was focused on expansion despite the shock to market prices. The company said in an exchange filing that it plans to open 1,800 collection centres over the next three years. The company said in its latest earnings report in February that it would expand its home collection service to 200 locations within two years.