Hospital chain Fortis Healthcare will raise Rs 1,000 crore through rights issue of shares with warrants. With this, the authorised share capital of the company will increase 69.5 per cent to Rs 678 crore from Rs 400 crore.
The proceeds will be used for future investments, redeem preference shares, repay short term debt, upgrade existing facilities and for greenfield projects, including the upcoming Medi-City project in Gurgaon, Fortis said in a statement. The share ratio and price would be decided at a later date. The rights issue is expected be completed by May 2009.
The company had mobilised Rs 496 crore in April 2007 through a public issue. The promoters currently own 74.4 per cent. Fortis, which currently has 23 hospitals concentrated in the northern part of India, is targetting 40 hospitals by 2012.
The rights issue announcement has pushed the scrip up by about 2.4 per cent on BSE.
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