UK based Trinity Capital (Eight) Limited has increased its stake in Ranbaxy group promoted Fortis Healthcare Limited (FHL) to four per cent from one per cent, through an additional investment of Rs 87 crore (Rs 870 million) in the equity shares (60 lakh) of FHL.
This is the second private placement agreement of Trinity with FHL, after an investment of about Rs 28 crore or Rs 280 million (20 lakh equity shares) in January 2007.
The evaluation for both the placements are the same. The private placements have been in the run up to the initial public offer to be announced by FHL soon.
"With Trinity picking up more stake, we have almost completed the provision we had left for pre-IPO placements. The dates for IPO should be decided within a week. The IPO will happen during the first quarter of the financial year, 2007-08." Shivinder Mohan Singh, managing director, FHL, said.
According to the draft red herring prospectus filed with the Securities and Exchange Board of India, the company left a provision of a maximum of 17,884,614 equity shares for a pre-IPO placement. The equity shares issued pursuant to the pre-IPO agreement shall be subject to lock-in after the completion of the IPO, as per Sebi regulations.
FHL had earlier signed two pre-IPO agreements, one in December 2006 and another in January 2007, for allotment of 40 lakh shares for Rs 56 lakh or Rs 5.6 million (including Trinity's earlier offer).
Subsequent to this and previous pre-IPO investments, the number of equity shares to be issued to the public in the IPO will be further reduced to the extent of the number of equity shares issued in the pre-IPO investments.
FHL currently has a network of 11 hospitals, primarily in North India, and 16 satellite and heart command centers (including one heart command center in Afghanistan).
The hospitals include multi specialty hospitals as well as super-specialty centers, providing tertiary and quaternary healthcare to patients in areas such as cardiac care, orthopedics, neurosciences, oncology, renal care, gastroenterology and mother and child care.
The book running lead managers to the issue are JM Morgan Stanley Private Limited, Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited.