Fortis mops up Rs 150 cr via pre-IPO placement

Fortis Healthcare (FHL) on Tuesday signed pre-IPO agreements worth $33.33 million (Rs 150 crore) with two US-based companies "� Quantum (M) Limited and Blue Ridge Limited Partnership and Blue Ridge Offshore Master Limited Partnership "� for investment in the equity shares of the company.

As per the agreements, FHL will issue a maximum of 5.96 million equity shares each (totalling 11.92 million equity shares) to Quantum and Blue Ridge at a price equal to the IPO price.

The issue of shares will be subject to a lock-in period after the IPO, as per the Securities and Exchange Board of India (Sebi)regulations, a statement issued by FHL said.

The company had filed its Draft Red Herring Prospectus (DRHP) with the Sebi on September 29 with its proposal to access the capital market with its IPO of 56,666,633 equity shares through the 100 per cent book-building process to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Subsequent to the pre-IPO investment, the number of equity shares available for IPO would be reduced to the extent of the number of shares issued to Blue Ridge and Quantum.

According to the DRHP, the company had left a provision of a maximum of 17,884,614 equity shares for a pre-IPO placement.

Commenting on the development, Shivinder Mohan Singh, managing director, FHL, said, "We are expecting a closure from the Sebi any day now.

Depending upon the Sebi directives, the IPO should happen during the first quarter of the next year." He said the IPO aims at raising Rs 730 crore to fund new projects and also re-finance existing debts.

FHL, a Ranbaxy-promoted group company, currently has a network of 12 hospitals, primarily in north India and 16 satellite and heart command centres.