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Hospital chain Fortis Healthcare is planning to raise between Rs 350 crore and Rs 450 crore by way of institutional placement programme (IPP).
The company, through a stock exchange filing, announced today that its board has approved issue of about 35 million or 45 million fresh equity shares to institutional investors. Fortis said that market regulator Sebi has approved its red herring prospectus for the public issue.
It further stated that the price band for the offering will be made public a day prior to the issue opening.
Shares of the company were trading at Rs 99.95, up 0.10 per cent on BSE. At current market price, the New Delhi-based firm can raise anywhere between Rs 350 crore and Rs 450 crore, depending on the number of shares it offers.
Following the stake sale, the promoter holding in the company may drop to either 75 per cent or 73.33 per cent from current 81.48 per cent.
Sebi has provided a relaxation to Fortis by allowing the minimum number of investors in the proposed IPP to be less than 10.
The board of Fortis has approved issuance of up to 28.6 million shares to International Finance Corporation (IFC) for up to $45 million (about Rs 250 crore) on a preferential basis. The board has also approved a private placement of foreign currency convertible bonds (FCCB) to IFC for an aggregate amount of $55 million (about Rs 300 crore).
The company has said the floor price for the bond will be Rs 99.09.
“The preferential allotment of equity shares and the private placement of the bonds are both subject to the successful completion of the issue. They are also subject to execution of necessary agreements and receipt of approvals and consents as may be required,” the company said.
An extra-ordinary general meeting (EGM) will be held on May 24 to obtain shareholder approval for the preferential allotment.
