In order to gain an early advantage in Tier II cities and strengthen presence in major metros, Wockhardt Hospitals Ltd, the hospitals arm of pharma major Wockhardt group, has charted an ambitious plan of nearly 15 new greenfield/brownfield projects.
With an estimated investment of Rs 675 crore, the company has decided to focus on cities like Surat, Madgaon (Goa), Bhopal, Nagpur, Nashik and Bhavnagar.
?In most of these cities, we expect to be among the first major private healthcare service providers to tap the tertiary care operations which we believe will help us grow faster,? the company said in its Draft Red Herring Prospectus (DRHP) filed with Sebi recently. Wockhardt Hospitals has grown from a three-hospitals company with 139 beds to a network of eight super-speciality hospitals and four regional ICU hospitals with 1090 beds. ?We employ a flexible approach in our expansion plans, engaging in either greenfield or brownfield projects,? the company said. With the proposed projects, the company is expected to add over 1,750 beds.
Among the proposed 15 projects, nearly nine are said to be coming up in Tier II cities, including Ludhiana, Jabalpur and Amritsar. The bed size ranges from 70 to 280. Out of the proposed six greenfield projects, Mumbai (Versova) project is expected to be the major hospital with an estimated bed size of 492. The project is still in its preliminary stages. Among the greenfield projects, Mumbai will have three hospitals and there will be one each in New Delhi, Kolkata and Kalyan in Thane district of Maharashtra.
Post-issue, the promoters? holding in the company is expected to come down substantially to 71.20%.
The main promoters and group companies such as DHPL, Carol Info Services and H F Khorakiwala together hold almost entire 100% stake in the company.
Surplus money from the proceeds will be used to retire high-cost debts.