International Finance Corporation (IFC) has increased its stake in Apollo Hospitals Enterprise Ltd (AHEL) by converting its Foreign Currency Convertible Bonds (FCCBs) into equity.
The value of shares converted into equity is estimated to be around Rs 90 crore, with the current market price.
Post this conversion, there are no outstanding FCCBs with the company, said company sources.
It may be noted, the World Bank's arm has infused $15 million in AHEL in 2009 for 1500 Unsecured FCCBs of $10,000 each. As per the terms of the FCCB loan agreement IFC had an option to convert the FCCBs wholly or partly from time to time into equity shares.
IFC earlier in 20110 converted 50 per cent of the FCCB loan amount aggregating to $7.50 million were converted into 1,140,992 equity shares of Rs 5 each and the said equity shares were alloted in December 2010 to IFC by AHEL.
Based on the applicable rupee dollar exchange rate as on May 25, 2012, it has been determined that a total of 1,381,619 equity shares of Rs 5 each would need to be alloted to IFC upon effecting the conversation, said Apollo Hospitals.
The board of directors of the company met on Thursday and approved the allotment of 1,381,619 equity shares to IFC.
“With this conversion, IFC's holding in the company will be increased to 1.85% from 0.85%,” said the company sources.
Post this conversion, there are no outstanding FCCBs with the company.
AHEL founder to infuse Rs 116 cr
Apollo Hospitals Enterprise Ltd (AHEL's) Founder and Executive Chairman Prathap C Reddy to infuse around Rs 116 crore into the company. The proposed infusion comes at a time, when the hospital chain lined up capex to the tune of around Rs 1,939 crore.
According to sources in the company, “he (Reddy) will convert 2.5% 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”.
At present Reddy holds around 32-33% in the company.
The development comes at a time the hospital chain is planning to invest around Rs 1,939 crore to expand its number of beds, through green and brownfield projects. Of the total investment, Apollo's share would be around Rs 1,748 crore.
The investment plan will be upto 2015.