Wockhardt price band at Rs 225-260

NEW DELHI: Wockhardt Hospitals has lowered its price band for its forthcoming initial public issue that will open on January 31. The revised price band has been fixed between Rs 225 and Rs 260.

Earlier, the price band was fixed between Rs 280 and Rs 310. The 100% book building issue with a total of 2.51 crore shares on offer will close on February 5.

Kotak Mahindra Capital, Citigroup Global Markets, ICICI Securities and SBI Capital Markets are the book running lead managers for the issue. Post public issue, the promoters will have around 71% stake in the company.

Wockhardt will raise Rs 800 crore through IPO. The money would be used to set up 17 new hospitals by 2010 and also repay debt. “The company will raise Rs 800 crore, of which nearly Rs 569 crore would go into expansion, while Rs 285 crore would be spent in repayment of debt,” Wockhardt Hospitals’ MD Anil Kamath said.

The proposed offering has been assigned an IPO grade of 4/5 by Fitch Ratings India. The shares will be listed on Bombay Stock Exchange and National Stock Exchange. It is planning to make a major foray into the organ transplantation segment.

The hospital chain is closely working with its partner Harvard Medical International to finalise the finer modalities and treatment protocol. Wockhardt plans to offer transplantation services for liver, kidney and heart.

It is building its Bangalore and Mumbai facilities as centres of clinical excellence where the procedures will be practised. (BCCL holds 1.55% of the post-public issue equity capital of Wockhardt Hospitals)

The hospital will perform these surgeries at nearly one-fifth to one-eighth cost of their treatment in the West.