Fortis receives Sebi nod Rs 997 cr rights issue

Hospital chain Fortis Healthcare today said it has got approval from the regulatory body Sebi for its Rs 997-crore rights issue for funding some of its expansion projects and its recent acquisition of Workhardt Hospitals.

Sebi has given approval for issue of equity shares with warrants on a rights basis at a price of Rs 110 per equity share amounting to Rs 997 crore, which exclude the value of warrants, Fortis Healthcare said in a statement.

The rights issue is likely to open by the end of this month. As part of the process, shareholders of Fortis shall be entitled to subscribe to two right shares for every five equity shares held as on the record date.

The company will use the money for 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, the statement added.

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