The country’s largest hospital chain Apollo Hospitals Enterprises has opened subscription to a qualified institutional placement (QIP) and is looking to mop up Rs 330 crore(~$ 73 million) from investors.
Apollo said that the floor price of the offering would be Rs 491.29 per share. The share price of Apollo closed Hospitals closed at Rs 493.3, down marginally by 0.38 per cent.
Private equity major Apax Partners holds 13.36 per cent stake in the company while Malaysian sovereign wealth fund Khazanah owns over 11 per cent stake. Their holding will shrink post the QIP issue.At Rs 491.21 per share base price, the company could be looking at a pre-money valuation of Rs 6,127 crore and post-money valuation of Rs 6,457 crore. At this valuation, the company could be looking at adilution of around 5 per cent.
Prathap Reddy-led Apollo Hospitals is one of India's largest healthcare services firm with over 8,500 beds across 54 hospitals. It competes with the likes of Fortis and Max Healthcare.
Apollo reported a 28 per cent increase in revenues to Rs 2,605 crore with net profit rising by over 33 per cent to Rs 174 crore for the year ended March 31, 2011.
"The company is adding over 2,400 beds over a period of three years. This involves a total capex of Rs 1100 crore. Since Apollo Hospitals is adding capacity mainly through the greenfield route, its return ratios are expected to get impacted marginally over the next one and half years as the full benefits of this capex would be available to the company only after FY13," said ICICI Securities in a reported in May.