Fortis plans to raise Rs 504 cr through IPO

Fortis Healthcare plans to raise about Rs 504 crore (Rs 5.04 billion) from the capital market in addition to the Rs 154 crore (Rs 1.54 billion) raised through private placements before the IPO, a top company official said in Mumbai on Wednesday.

Fortis has fixed the price band between Rs 92 and Rs 110 per equity share of Rs 10. The issue is open between April 16 and 20 and the shares would be listed on the premier exchanges of the country -- Bombay Stock Exchange and National Stock Exchange.

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 Rs 144 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.