Wockhardt to raise Rs 800 cr via IPO
Multi-specialty hospital chain Wockhardt will raise Rs 800 crore through an initial public offering (IPO). The money would be used to set up 17 new hospitals by 2010 and also repay debt.
By TNN |
NEW DELHI: Multi-specialty hospital chain Wockhardt will raise Rs 800 crore through an initial public offering (IPO). The money would be used to set up 17 new hospitals by 2010 and also repay debt.
The company would tap the capital market with an issue of over 2.5 crore equity shares of Rs 10 each, representing 24% of its post-issue capital.
It will offer the shares in a price band of Rs 280-310. The issue will open for subscription on January 31 and close on February 5. Post public issue, the promoters will have around 71% stake in the company.
“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. (BCCL holds 1.55% of the post-public issue equity capital of Wockhardt Hospitals)
He said the company would set up 17 new hospitals across the country by 2010 through green field (6) and brown field (11) projects to take the total number of its healthcare facilities to 32 by 2010.
The new hospitals would be set up in Mumbai, Delhi, Bangalore and Kolkata, while the brownfield hospitals would come up in tier-II cities like Goa, Bhopal, Bhavnagar, Nashik, Ludhiana, Jabalpur, Bhuj, Patna, Hubli and Varanasi. The IPO has been assigned an IPO grade of 4/5 by Fitch, indicating above average fundamentals.
The company would tap the capital market with an issue of over 2.5 crore equity shares of Rs 10 each, representing 24% of its post-issue capital.
It will offer the shares in a price band of Rs 280-310. The issue will open for subscription on January 31 and close on February 5. Post public issue, the promoters will have around 71% stake in the company.
“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. (BCCL holds 1.55% of the post-public issue equity capital of Wockhardt Hospitals)
He said the company would set up 17 new hospitals across the country by 2010 through green field (6) and brown field (11) projects to take the total number of its healthcare facilities to 32 by 2010.
The new hospitals would be set up in Mumbai, Delhi, Bangalore and Kolkata, while the brownfield hospitals would come up in tier-II cities like Goa, Bhopal, Bhavnagar, Nashik, Ludhiana, Jabalpur, Bhuj, Patna, Hubli and Varanasi. The IPO has been assigned an IPO grade of 4/5 by Fitch, indicating above average fundamentals.
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