Fortis opens Rs 997cr rights issue

Hospital chain Fortis Healthcare's rights issue, through which the company intends to raise up to Rs 997 crore, opened today.

Fortis Healthcare will allot two shares for every five equity shares held by existing shareholders on rights basis at a price of Rs 110 a piece.

The company will issue over 9.06 crore shares under the rights offering to its existing shareholders.

The offer closes on October 15, Fortis said in a public announcement today.

The rights issue has been on the anvil since last year but unfavourable market conditions had prevented the company from hitting the market.

The company will use the proceeding from rights issue for funding some of its greenfield projects, besides redemption of preference shares, repayment of short term debt, upgrade existing facilities and part funding for acquisition of 10 hospitals from Wockhardt Hospitals, Fortis had earlier said.

The company has fixed August 20 as the record date for determining the shareholders eligible for the rights offering.

Also, "for every equity share allotted on a rights basis, one detachable warrant will be issued and allotted," the public announcement said.

Malvinder Mohan Singh, Shivinder Mohan Singh and Fortis Healthcare Holdings are the promoters of the company.

On the Bombay Stock Exchange, shares of Fortis Healthcare closed at Rs 106.75, down 0.79 per cent.