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Fortis plans to raise Rs504 cr through IPO

Fortis plans to raise Rs504 cr through IPO
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First Published: Wed, Apr 04 2007. 05 51 PM IST
Updated: Wed, Apr 04 2007. 05 51 PM IST
PTI
Mumbai: Fortis Healthcare plans to raise about Rs504 crore from the capital market in addition to the Rs154 crore raised through private placements before the IPO, a top company official said on 4 April 2007.
Fortis has fixed the price band between Rs92 and Rs110 per equity share of Rs10. The issue is open between 16-20 April.
The funds raised would be used to “meet the cost of development and construction of a new hospital, refinance the funds availed for the acquisition of Escorts Heart Institute (Delhi, in 2005) and prepay some of our short-term loans”, the company said in the prospectus.
The pre-IPO allotment of 1.06 crore shares were made to Trinity Capital, Vasco Inc, Raj Kumar Bagri and Apurv Bagri at an average price of Rs144 per share, which is higher than the price band on offer for the IPO.
“Our bankers have advised us to give some discount to investors during the IPO. So the reduction in price. Whereas our pre-placement investors would be involved with us for a longtime,” Fortis Healthcare MD Shivinder Mohan Singh told reporters.
Shivinder is the younger brother of Ranbaxy CEO and MD Malvinder Mohan Singh. The Ranbaxy CEO and MD is on the board of Fortis as non-executive director.
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First Published: Wed, Apr 04 2007. 05 51 PM IST
More Topics: Money Matters | IPOs |