Trikona Cap to invest $18 million in Fortis
Real estate-focused PE player Trikona Capital is investing $18 million in healthcare major Fortis Healthcare, in a pre-IPO placement deal.
By Vinod Mahanta & Amanpreet Singh, TNN |
MUMBAI/ NEW DELHI: Real estate-focused PE player Trikona Capital is investing $18 million in healthcare major Fortis Healthcare, in a pre-IPO placement deal. The north India-based healthcare major has recently filed for an IPO and has raised funds to the tune of $33.33 million as part of its pre-IPO placement. According to sources, Trikona is interested in Fortis because it wants to invest in the social sector. Besides, the fact that the hospital is situated on prime real estate is a major draw card.
When contacted by ET, a Fortis Healthcare spokesperson said: “There is no confirmatory comment at this point.” Trikona Capital MD Ashish Kalra said: “It is a well-known fact that Trikona Capital is one of the largest known funds in India and that we are looking to invest $1 billion in the next one year. As a publicly-listed investment vehicle, we do not make any forward looking statements.”
Earlier in the month, George Soros’ fund Quantum and Blue Ridge bought 59.6 lakh shares each of Fortis. Sources say Fortis plans to raise about Rs 730 crore through the IPO, wherein the promoters are expected to dilute 25% of their holdings in the company. Fortis needs the funds to further its expansion plans as well as to write-off the debt it had incurred while acquiring Escorts Heart and Institute and Research Centre.
According to reports, Fortis Healthcare is planning a mega-expansion, some through acquisitions, which will require an investment of over Rs 2,250 crore by 2010. The healthcare major has retained global consulting firm McKinsey to chalk out its expansion plans. Fortis is said to be looking at a total of 35-40 hospitals in north, south and west India in the next four years.
Trikona Capital, on the other hand, has made investments of close to $150 million till now in India. They picked up a minority stake for $10 million in IL&FS Transportation and Networks, $20 million in an integrated township project in Thane, $22 million in a residential project in Mumbai and around $55 million in an IT park in Greater Noida. The fund also has partnerships with HDFC and IL&FS to make investments in India.
When contacted by ET, a Fortis Healthcare spokesperson said: “There is no confirmatory comment at this point.” Trikona Capital MD Ashish Kalra said: “It is a well-known fact that Trikona Capital is one of the largest known funds in India and that we are looking to invest $1 billion in the next one year. As a publicly-listed investment vehicle, we do not make any forward looking statements.”
Earlier in the month, George Soros’ fund Quantum and Blue Ridge bought 59.6 lakh shares each of Fortis. Sources say Fortis plans to raise about Rs 730 crore through the IPO, wherein the promoters are expected to dilute 25% of their holdings in the company. Fortis needs the funds to further its expansion plans as well as to write-off the debt it had incurred while acquiring Escorts Heart and Institute and Research Centre.
According to reports, Fortis Healthcare is planning a mega-expansion, some through acquisitions, which will require an investment of over Rs 2,250 crore by 2010. The healthcare major has retained global consulting firm McKinsey to chalk out its expansion plans. Fortis is said to be looking at a total of 35-40 hospitals in north, south and west India in the next four years.
Trikona Capital, on the other hand, has made investments of close to $150 million till now in India. They picked up a minority stake for $10 million in IL&FS Transportation and Networks, $20 million in an integrated township project in Thane, $22 million in a residential project in Mumbai and around $55 million in an IT park in Greater Noida. The fund also has partnerships with HDFC and IL&FS to make investments in India.
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