Fortis Healthcare plans rights issue to raise Rs2,000 crore for acquisitions

24 December 2008

Fortis Healthcare is finalising plans to raise a total of around Rs2,000 core through a rights-cum-warrants issue to its existing shareholders, to finance its acquisition and expansion plans.

The issue, which will consist of Rs1,000 crore in shares and Rs800 crore in warrants, is expected to be in the ratio of 1:2.

Fortis Healthcare said it is in advanced stages of finalising three acquisitions and these are expected to be concluded in the next couple of months.

Fortis is making a big push with plans to acquire majority stakes in hospitals and land acquisitions in strategic locations.

The hospitals chain is in talks with the Manipal Group for a 51-per cent stake. Fortis is said to have offered to acquire Manipal Group shares at an enterprise value of Rs900 crore against the asking price of Rs1,200 crore.

The Manipal Group is planning to raise around Rs500 crore through various routes, including an equity issue and private placement.