Wockhardt to mop up Rs 800 cr via IPO; hospital count to go up by 32

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New Delhi, Jan 28 (UNI) Wockhardt Hospitals, the wholly owned arm of pharma major Wockhardt Ltd, today said it will augment about Rs 800 crore through initial public offering (IPO), part of which will be utilised in scaling up the number of hospitals to 32 from existing 15 across the country by the end of 2010.

''We will open 17 more hospitals across the country, including the tier II cities by 2010. The expansion will be funded through the IPO proceeds of Rs 800 crore which will open on January 31 and close on February 5,'' company Managing Director Anil V Kamath told reporters here.

Wockhardt Hospitals Ltd has fixed the price band between Rs 280 and Rs 310 per equity share for its IPO of 25,087,097 equity shares of Rs 10 each for cash at a price determined through a 100 per cent book building process.

Mr Kamat said the IPO proceeds will also be used for repayment of unsecured loans which had been taken for the development and construction of the current greenfield and brownfield hospitals.

At present, the company's total number of beds stand at 1,374 in the 15 existing hospitals which will increase to 3,419 beds after the expansion, he said.

Out of the 17 new hospitals, 11 will be brownfield hospitals, where Wockhardt will tie up with small or mid-sized hospitals in tier II towns and use and expand their facilities by investing on a profit sharing model.

The new brownfield hospitals will come up at Ludhiana, Varanasi, Bhopal, Surat, Patna and Goa, while the six greenfield hospitals, built, and owned by Wockhardt, will be erected at South Mumbai, Delhi, and Kolkata.

The issue comprises a net issue to the public of 2,45,78,097 equity shares of Rs 10 each (the net issue) and a reservation of up to 5,00,000 shares for subscription by eligible employees.

The issue will constitute 24.06 per cent of the post-issue paid-up equity share capital of the company.

Of the total equity float, at least 60 per cent of the net issue will be allocated on a proportionate basis to qualified institutional buyers (QIBs), out of which five per cent will be available for allocation on a proportionated basis to mutual funds only.

Further, up to 10 per cent of the net issue will be available for allocation on a proportionate basis to non-institutional bidders and up to 30 per cent of the net issue will be available for allocation on a proportionate basis to retail individual bidders.

UNI SBA/MP PDT SSC1528

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