Apollo Hospitals hits record high on launch of Rs 1,000-crore QIP

Shares of Apollo Hospitals Enterprise hit a record high of Rs 2,654 on the BSE in the intra-day trade on Tuesday after the company announced that it has launched a qualified institutional placement (QIP) issue to raise upto Rs 1,000 crore.

Based on Sebi's pricing formula for such transactions,the board has fixed the floor price at Rs 2,508.6 for the share sale. The final issue price, including any discount to the floor price, will be determined in the fund-raising committee meeting on January 22, 2021, Apollo Hospitals said in a statement.

The company said funds would be utilized for purchasing the balance 50 per cent stake in Apollo Gleneagles, any potential inorganic opportunity, reducing debt, technology upgradations, and other general corporate purposes.

At 02:55 pm, the stock was trading 1.4 per cent higher at Rs 2,643, after hitting an intra-day low of Rs 2,579 today. In comparison, the S&P BSE Sensex was up 1.8 per cent at 49,456 points. A combined 1.2 million equity shares had changed hands on the NSE and BSE till the time of writing of this report.

In the past one month, the stock of Apollo Hospitals has outperformed the market by gaining 10 per cent, as against a 5 per cent rise in the benchmark index. In the past six month, it has rallied 76 per cent, as compared to a 34 per cent gain in the Sensex.