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Wockhardt Hospitals plans IPO

BS Reporter  |  Mumbai 

Wockhardt Hospitals (WHL), one of the largest private healthcare services company, is entering the capital market with an initial public offer (IPO).
The company, which was started with a hospital at Kolkata in 1989, is planning to expand its number of hospitals from 15 to 31 in two years.
"We have already invested about Rs 500 crore for setting up the greenfiled and brownfield facilities, and require another Rs 600 crore for its completion. We will utilise the IPO proceeds to complete these projects, pre-pay some of the short-term loans and meet general corporate expenses," said Wockhardt chairman Habil Khorakiwala.
Wockhardt will issue 2.5 crore equity shares of Rs 10 each for cash at a price band to be determined through 100 per cent book building process.
The issue will open on January 31, 2008, and close on February 5, 2008. The price band has been fixed between Rs 280 and Rs 310 a share.
The offer comprises a net issue of 24,587,097 equity shares of Rs 10 each to the public and a reservation of up to 5 lakh shares for subscription by eligible employees. The net issue will be allocated to the qualified institutional buyers (QIBs) on a proportionate basis.
Khorakiwala said the management of Wockhardt Hospitals will watch the developments in the stock markets in the coming days.
"We will take an appropriate decision on progress of the IPO, considering the interests of the investor community," he added.
Wockhardt Hospitals, part of pharmaceutical and biotechnology company Wockhardt, is setting up new hospitals in the south and north of Mumbai, Delhi, Bangalore and Kolkata, and plans brownfield hospitals in tier-II cities such as Goa, Bhopal, Nashik, Bhavnagar, Ludhiana, Jabalpur, Bhuj, Patna, Hubli and Varanasi.
The joint global co-ordinators and book running lead managers to the issues are Citigroup Global Markets India and Kotak Mahindra Capital Company. ICICI Securities and SBI Capital Markets are the book running lead managers.

First Published: Wed, January 23 2008. 00:00 IST