FIPB turns down Apollo Hospitals' fund raising proposal
The company, last May, announced plans to raise Rs 750 cr through rights issue to support expansion and reduce debt
The company has earlier announced its plans to raise Rs 750 crore to support its expansion plans, through a rights issue subject to various regulator approvals.
Ministry of Finance press release says, "For approval for allowing foreign investment by the non-resident shareholders pursuant to the proposed rights issue subject to RBI and other necessary approval," is in the list of rejected proposals. It may be noted that the proposal was rejected by the Board earlier also.
The fund raising is to back company's proposed expansion plan and to bring down its debt level, according to earlier reports. While the company could move the proposal again to the Board, it can also look at other options of fund raising, depending upon the decision of the Board of Directors, according to sources close to the company.