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Fortis Healthcare signs pact for pre-IPO Investment up to USD 33 mn

Written by: Staff

Mumbai, Dec 5 (UNI) Fortis Healthcare, one of the largest private healthcare companies in India, has signed definitive agreements - pre-IPO investment pact - with two companies for an aggregate amount up to USD 33.33 million.

Announcing this, a Fortis press release today said Quantum (M) Ltd and Blue Ridge signed a pact with the company for a pre-Initial Public Offer. As per the terms described in the pre-IPO agreements, a maximum of 5.96 million equity shares will be issued to each of Quantum and Blue Ridge (totaling 11.92 million equity shares) at a price equal to the IPO price, for an aggregate amount up to USD 33.33 million.

The equity shares to be issued to Quantum and Blue Ridge will be subject to lock-in after the IPO, as per SEBI regulations.

The company had filed its Draft Red Herring Prospectus with the Securities and Exchange Board of India (SEBI) on September 29, 2006 with its proposal to access the capital market with its IPO of 56,666,633 equity shares through the 100 per cent book-building process to be listed on the Bombay Stock Exchange and the National Stock Exchange.

Subsequent to this pre- IPO investment, the number of equity shares to be issued to the public in the IPO would be reduced to the extent of the number of equity shares issued to Blue Ridge and Quantum.

According to the Draft Red Herring Prospectus filed with SEBI, the company has left a provision of a maximum of 17,884,614 equity shares for a pre-IPO placement.

Commenting on the development, Mr Shivinder Mohan Singh, Managing Director, Fortis Healthcare and Escorts Heart said, ''This investment benchmarks an encouraging value range for our Company. It reaffirms faith in the evolution of Indian Healthcare sector and confidence in the Fortis brand as a leading healthcare provider.'' Currently, Fortis Healthcare has a network of 12 hospitals primarily in North India and 16 satellite and heart command centers (15 in hospitals across the country and one heart command center in Afghanistan ).

The Book Running Lead Managers to the issue are JM Morgan Stanley, Citigroup Global Markets India and Kotak Mahindra Capital Company.


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