Apollo Hospitals Enterprise Limited (AHEL)’s founder and executive chairman Prathap C Reddy will be infusing around Rs 116 crore into the company.
Sources in the company said that Reddy would convert 2.5 per cent of his preferential warrants into 3.27 million shares with an infusion of around Rs 116 crore. “This will happen in the month of August,” sources said.
The promoters and the promoters group hold around 33.10 per cent of the total stake in the company. Of this, Pratap C Reddy individually has around 3.88 per cent stake at present, according to the data available with the National Stock Exchange.
The development comes at a time when the hospital chain is planning to invest around Rs 1,939 crore in expanding its number of beds by 2015. Of the total investment, Apollo’s share would be around Rs 1,748 crore.
The investment plan will be up to 2015.
The hospital would add 2,955 beds across 14 hospitals, thereby increasing the number of hospitals in its owned network to 51 from the current 37. The number of owned beds would go up from a 5,888 beds to over 8,800 beds in the financial year 2015, company officials said in a recent analyst call.
Of the Apollo’s share of investment of approximately Rs 1,748 crore, the company has already invested Rs 262 crore and a current cash balance of Rs 250 crore. The balance requirement of around Rs 1,200 crore will be funded through a mix of internal accruals and debt.
The number of operating beds as on March 31, 2012 were at 5,153. There was a net addition of 386 beds, including in Hyderabad, Vizag and Bhuvaneswar, last year.