Leading hospital group Fortis Healthcare Ltd plans to raise Rs 380 crore via a preferential share sale. It will issue 22.35 million shares on a preferential basis at Rs 170 each to GIC Special Investments Pte Ltd, through its affiliated investment vehicle. GIC SI is the private equity arm of Singapore Government state investment firm.
Post the issue, GIC SI’s affiliated investment vehicle will hold approximately 6.58% of the equity in the company on an expanded base. The issue price of Rs 170 per share represents a 1.4% premium over the closing price of the stock of Rs. 167.70 on NSE on Monday.
The Rs 380 crore infused through the proposed preferential issue will be utilised to finance the recent and future acquisition by the company and/or its subsidiaries.
The preferential allotment is in accordance with Chapter VI of the SEBI’s ICDR (Issue of Capital and Disclosure Requirements) Regulations 2009 and is subject to the shareholder approval at the Extra-ordinary General Meeting (EGM) to be convened on June 9th, 2010. The entire process of allotment of shares is expected to be completed by 24th June 2010.
The Board of Directors of Fortis has approved, subject to requisite approvals, issue of 22.35 million equity shares of face value Rs 10 each at a premium of Rs. 160 per share on a preferential basis to GIC Special Investments Pte Ltd, the statement said. Religare Capital Markets Ltd, the global investment banking arm of Religare Enterprises Limited, was the sole advisor and arranger to Fortis for the said issue.
Currently, the Fortis network has an over 12000 bed capacity across 68 hospitals in seven countries. Fortis commissioned its first hospital in 2001 at Mohali, near Chandigarh, and has expanded its Indian operations to 46 properties (including 10 projects) in 16 cities across 12 states.
The 2010 acquisition of a strategic stake in Parkway Holdings Limited increased Fortis' network, now with a presence in Brunei, China, India, Malaysia, Mauritius, Singapore and the UAE. The Fortis network has international accreditations, including seven JCI (Joint Commission International) and six NABH (National Accreditation Board for Hospitals) certifications.