FORTIS-1

India’s largest hospital chain Fortis Healthcare will raise $100 million ( 540 crore) from International Finance Corporation ( IFC).  Washington, the private sector arm of the World Bank, through a mix of selling fresh shares and issuing foreign currency convertible bonds (FCCB), a senior company official said. The issue will reduce the company’s debt by 1,000 crore.

Fortis, owned by millionaire brothers Malvinder and Shivinder Singh, will raise $45 million ( 245 crore) from fresh issue of shares and rest $55 million ( 300 crore) from FCCB. The floor price for FCCB is fixed at 99.09. The company will also raise $70-80 million by selling shares to institutional investors known in industry parlance as Institutional Private Placement (IPP).

“The board of director has decided to issue between 34.99 million shares to 45.02 million shares to qualified institutional buyers through IPP,” the company said. After completing the legal formalities, the offer will open on May 2. “Under the listing norms, Fortis cannot issue fresh shares to IFC on preferential basis before reaching the public shareholding of 75%,” he said. The IPP is aimed at bringing down promoters holding to 75% from 81% to adhere to Sebi listing norms.

Fortis had been raising funds since October to reduce debt. In October, the company raised 2,260 crore by listing its business Trust – Religare Business Trust – on the Singapore Stock Exchange, and in December, it raised 1,650 crore by selling the 64.15% stake it owned in its Australian subsidiary Dental Corporation. The two fund raising helped company reduce debt by 4,000 crore.

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