Fortis to spend Rs660 cr on hospitals, pref-cap, retiring debt

Fortis to spend Rs660 cr on hospitals, pref-cap, retiring debt

New Delhi: Hospital chain Fortis Healthcare said on Wednesday, it will spend around Rs660 crore on retiring debts, setting up a hospital in Gurgaon and on redemption of preference shares.

The company recently announced that it will raise Rs1,000 crore through issue of shares to its shareholders on a rights basis.

The company will issue shares in the ratio of 2:5, that is, shareholders of the company would get two equity shares for every five stocks held, at a price of Rs110 per issue.

“Out of the Rs1,000 crore which the company is raising, around Rs200 crore will be spent on repayment of debts, around Rs200 crore on Gurgaon hospital and another Rs260 crore on redemption of preference shares," Fortis managing director Shivinder Mohan Singh said on the sidelines of Indian Healtcare Forum here.

Besides this, the group has also kept around Rs200 crore for acquisitions and the remaining amount would be kept for corporate spending, Singh said.

Speaking about the company’s plan he said, “with the opening of its Shalimar hospital, the group would add one more hospital to its kitty."

Fortis has 28 hospitals with a total capacity of 3,300 beds and is aiming to take the total number of hospitals to 40 with a total capacity of 6,000 beds by 2011.