Fortis Healthcare to raise Rs 322 cr via IPP

Fortis Healthcare plans to raise Rs 322 crore through sale of nearly 3.5 crore shares to institutional investors.

The placement of shares to Qualified Institutional Buyers is to meet market regulator Sebi's minimum public shareholding norms for listed companies.

The company would issue 34,993,030 shares and at the price of Rs 92 per piece, the sale would fetch nearly Rs 322 crore, according to the offer prospectus filed with Securities and Exchange Board of India (Sebi). The firm would tap the Institutional Placement Programme (IPP) to meet the norms.

According to the company, the proceeds would be utilised for repaying debt, funding expenses and general corporate purposes.

"A portion of the net proceeds of the issue may also be used to repay a lender which is an affiliate of one of the Book Running Lead Managers," it added.

Standard Chartered Securities (India), J P Morgan India and Religare Capital Markets are the book running lead managers to the issue.

IPP is among the programmes introduced by Sebi to help corporates in increasing their public shareholding.

According to Sebi norms, listed private companies should have atleast 25% public shareholding by June 2013.