Healthcare major Apollo Hospitals Enterprise has decided to raise Rs 900 crore through qualified institutional placement (QIP) in the form of equity, non-convertible debentures (NCDs) and along with warrants to part-finance the ongoing Rs 1,300 to Rs 1,500 crore expansion-cum-upgradation of hospitals across the country.
The company is currently involved in adding 2,000 beds through greenfield projects, expanding the existing hospitals across all major cities and in tier-II and tier-III cities to take its total bed size to over 11,000 in the next two years, sources in the know said.
When contacted, a senior official of the company said, ?We have plans to raise Rs 900 crore through QIP route over the next few months. Around Rs 300 crore will be raised through issuance of fresh equity shares and Rs 300 crore through NCDs and the remaining Rs 300 crore through warrants.? The NCDs and warrants are for five-year period, he added.
The board which met here on Thursday, has constituted a committee of directors to finalise the terms of the QIP issue, including appointment of merchant bankers, legal counsels, price, among others. Towards this, the board has called for an EGM on January 22, 2011, to seek shareholders? approval, the official said.
To a question, he said, some of the major projects are coming up in Mumbai, Nasik and some major cities in north and southern regions. ?We hope to add 2,000 beds in the next two years,? he added.
According to him, as of now our focus will be ensure more and more pharmacies become EBITDA positive. ?Of the 1,200 pharmacies, nearly 400 to 450 pharmacies have become EBITDA positive and will start making profits in the near future.?
He declined to comment on the stake sale of the pharmacy business.
Meanwhile, the board has also approved the issue of 32,76,922 (constituting 2.5% of the paid up capital of the company) warrants convertible into equity shares to the promoters and promoters group at a price fixed as per the SEBI rules and terms.