BackFortis Healthcare IPO hits capital markets
Fortis Healthcare IPO hits capital markets
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PTI
Mumbai: Fortis Healthcare, a healthcare firm promoted by founders of Ranbaxy Group, hit the capital market on 16 April with an intial public offer to raise up to Rs503 crore.
The response to the IPO remained low on the first day with 16% of the total offered shares receiving bids from the investors.
The company is offering 4.59 crore equity shares in a price band of Rs92-110 an equity share.
The issue closes on 20 April. The net issue is expected to constitute 20.19% of the post-issue paid-up equity share capital of the company.
The shares are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.
Fortis Healthcare has already raised around Rs153.69 crore through the pre-initial public offer (IPO) placements including private equity firm Trinity Capital Plc, which has hiked its stake in the company to 4.24%.
The company intends to use the proceeds to part finance the construction ad development of a new hospital by its subsidiary and to refinance Rs560 crore availed for the acquisition of Escorts Heart Institute and Research Centre Ltd. The proceeds would also be used to prepay Rs70 crore of short-term loans and for the general corporate and issue expenses.
Of the net issue to the public, at least 60% shall be allotted to qualified institutional buyers (QIB).
Within the QIB portion, 5% would be available for allocation to mutual funds and not less than 10% of the net issue would be available for allocation to non-institutional bidders. The balance 30% of the net issue would be available for allocation to retail investors, in each case on a proportionate basis.
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