New Delhi: Healthcare services provider Wockhardt Hospitals will raise Rs800 crore through an initial public offering (IPO) to repay debt and fund its expansion plans, which include setting up of 17 new hospitals by 2010.
The company would tap the capital market through an issue of over 2.5 crore equity shares of Rs10 each, which will open for subscription on 31 January, and close on 5 February. It would offer the shares in a price band of Rs280-310 per equity share.
“We are one of the only healthcare companies in India which are making profit and we intend to grow rapidly with a focused approach on the sector.
The company will raise Rs800 crore, of which nearly Rs569 crore would go into expansion, while Rs285 crore would be spent in repaying unsecured debt,” Wockhardt Hospitals’ Managing Director Anil Kamath told reporters here.
He said the company would set up 17 new hospitals across the country by 2010 to take the total number of its healthcare facilities to 32.
Of the proposed 17 new hospitals, 11 would be brownfield and the remaining six would be greenfield.
The new hospitals would be set up in Mumbai, Delhi, Bangalore and Kolkata, while the brownfield hospitals would come up in tier-II cities like Goa, Bhopal, Bhavnagar, Nashik, Ludhiana, Jabalpur, Bhuj, Patna, Hubli and Varanasi.
The IPO has been assigned an IPO grade of 4/5 by Fitch, indicating above average fundamentals. The shares are proposed to be listed on the Bombay Stock Exchange National Stock Exchange of India.