Apollo to invest about Rs 1,000 cr

Apollo Hospitals Enterprise Ltd is planning to invest around Rs 900-1,000 crore over the next two years, to add 2,500 beds. India’s one of the largest hospital chain has said, funding for the proposed expansion will come from the proceedings of the proposed Qualified Institutional Placement (QIP) and other modes. Besides, the hospital chain also plans to set up two colleges to address human resources shortage.

After inaugurating a full field digital mammography with tomosynthesis (3D) system, for the first time in South Asia, at one of its hospitals in Chennai, Dr Prathap C Reddy, founder and chairman of Apollo Hospitals Enterprise Ltd, said, during the present fiscal 1,000 beds will be added and in 2012-13 another 1,500 beds will be added. The total outlay for the proposed expansion will be around Rs 900-1000 crore.

At present the Chennai-based Apollo Hospitals has around 8,500 beds across its facilities in various parts of the country. He added, the new beds will be added through 20 new hospitals, across southern and northern parts of the country and two in Mumbai.

The proposed expansion will be funded through the proposed QIP, promoters infusion, debt and internal accurals.

It may be noted, in January the Bombay Stock Exchange-listed Apollo Hospitals got the shareholders’ nod for a Rs 900 crore QIP and also said promoters will also be planning to infuse Rs 155 crore.

The approval to raise Rs 900 crore by converting equity and non convertible debentures with warrants through QIP Scheme.

“We want to double our infrastructure for which funds are not a constraint, but it’s the the human resource,” said Reddy.

Properties are purchased for the expansion. Now we have to augment the human resource, he added.

To address the human resource issue, Apollo Hospitals is planning two medical colleges over the next 12-24 months. Already, the hospital runs nursing college and other training institutions for various departments, relating to healthcare.