Apollo Hosp to float GDR next month

The proposed global depository receipts (GDR) issue of Apollo Hospitals is slated to hit the market by the middle of next month. The company will list the GDR on the Luxembourg stock exchange.

According to earlier reports, the issue was scheduled to hit the market by June 10. The company has chosen Kotak Mahindra and Citibank as the bankers to the issue.

While the amount to be raised through the primary issue is $60-65 million, there is likely to be a sponsored issue of $55 million with a greenshoe option of $9 million, as per initial announcements by the company.

On why the company chose a GDR and not an IPO, a top official said the former was considered best by the board as its was creating a lot of interest among FIIs and the best way to capture it was through a GDR.

The healthcare major also said that it might be able to capitalise better on its brand image abroad. However, the officials were tightlipped about their expansion or consolidation plans as they are observing the mandatory 'quiet period' before the GDR launch.