Fortis to invest 0mln to set up 4 healthcare centres

New Delhi, Apr 6 (UNI) Fortis Healthcare Ltd, leading private healthcare company, will pump in 250 million dollars in setting up four healthcare centres.

The centres, to be located at Mumbai, Jaipur, Gujarat and the national capital, will be partly funded through its upcoming initial public offer (IPO) and internal sources.

''The total project outlay is of 250 million dollars. A sum of Rs 100-150 crore is expected to be raised via IPO proceedings,'' company sources said.

Among the four projects, the 152-bed speciality healthcare centre at Navi Mumbai is expected to start operations this financial year.

Besides, a 163-bed institution in Jaipur will come up by the end of June. While the 258-bed centre in Delhi is projected to be functional by 2008-09, another in Gujarat will be done by 2009-10.

Further, the company is also planning to establish 30-40 hospitals in next five years across the country. It seeks to extend its bed strength to about 6,000 from the current 1,793 beds.

Fortis Healthcare Ltd is entering the capital market with an IPO of 45,99,66,439 equity shares of Rs 10 each in a price band of Rs 92 - Rs 110.

The issue opens for subscription on April 16 and closes on April 20.

''The funds from the IPO will be utilised in expansions. Besides, about Rs 300-400 crore will be put in for repayment of debts and the rest for corporate heads,'' said Fortis Healthcare Ltd Chairman Harpal Singh.

The net issue expected to constitute 20.19 per cent of the post-issue equity share capital of the company.

The company proposes to allot 2,42,476 equity shares to eligible employees in the firm allotment portion.

Mr Singh demanded the government to increase the amount spent on healthcare, which is 5.2 per cent of GDP at present, to integrate healthcare facilities in the country.

He also said the government should join hands with the private sector to encourage public private partnership in healthcare sector, which will help in accessing the rural population of the country.

UNI