Fortis fixes detachable warrant price at Rs 150 per unit

Hospital chain Fortis Healthcare today said it has fixed the conversion price of detachable warrants, which were issued last year as a part of a Rs 997 crore rights issue, at Rs 153 per unit.

The company, in a statement, said the warrant exercise price for the conversion of detachable warrants -- securities issued in conjunction with another security, which entitle the holder to buy a given number of shares of stock at a stipulated price -- has been fixed at Rs 153.

The detachable warrants were issued earlier under the rights issue on September 22, 2009, Fortis said.

"Further, the company has fixed May 17, 2010, as the Warrant Record Date for the purposes of determining the warrant holders in connection with the exercise of the detachable warrants and their respective entitlements, subject to the approval of the Stock Exchanges," it said.

In September last year, Fortis had issued 9.06 crore equity shares with detachable warrants on a rights basis to shareholders for raising Rs 997 crore.

As part of the rights issue, shareholders of Fortis shall be entitled to subscribe to two right shares for every five equity shares held on the record date.

Further, the notice period for exercise of the said detachable warrants shall be May 21, 2010, to June 19, 2010, and any detachable warrants that are not exercised prior to the notice period shall lapse, it added.

Fortis said that it would use the proceeds from the issue in funding some of its greenfield projects, besides redemption of preference shares, repayment of short term debt, upgrade of existing facilities and part funding for acquisition of 10 hospitals from Wockhardt Hospitals last year.

Fortis had acquired 10 hospitals from Wockhardt in August last year for Rs 909 crore.