Wockhardt Hospital Limited to raise Rs 800 crore through IPO

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Bangalore, Jan 24 (UNI) Wockhardt Hospitals Limited, one of the largest private healthcare services companies in India, will raise Rs 800 crores by issuing 25,087,097 equity shares of Rs 10 each in the price band fixed between Rs 280 and Rs 310 per equity share.

Addressing a press conference here today Wockhardt Hospitals Limited Managing Director Anil Kamath informed that the proceeds of the IPO would be utilised mainly to meet the cost of development and construction of greenfield and brownfield hospitals across the country.

The issue opens on January 31 and closes on February 5, Mr Kamath added.

Mr Kamath said that while Rs 568 crores raised through IPO would be spent on infrastructure development, remaining would be utilised to repay, some of the short term loans.

The proposed greenfield hospitals for which already lands has been acquired would be set up at Kolkata, Mumbai, Bhopal, Ludhiana and Jabalpur. "The company also intends to use a part of the proceeds of the IPO for investment in acquiring existing hospitals and other strategic investments" he added.

Mr Kamath said that the increased penetration of Health Insurance, Medical Value travel and shifting demographics and socio-economic trends and shifting of spending patterns among the Indians have created more demand for healthcare services and improve the availability of hospital beds and doctors. According to a study conducted by CRIS-INFAC nearly Rs 668 billion will be required by 2011 and Rs 1654 billion by 2016 for ramping up the healthcare infrastructure of which only one-fifth is expected to come from the government. "The remaining amount have to come from private sector".

Mr Kamath said that with company's expansion plan the total number of beds in Wockhadrdt hospital will reach about 4793 from the present 1374 beds.

He said that during the year ended March 31-2007, the company has performed over 10000 interventional cardiac procedures, 1000 orthopedic procedures and 400 neuro and spine surgeries. The Super-specialty Hospital in Mumbai which has received international accreditation from Joint Commission International (JCI) was making a foray into the domain of heart-transplantation process last year in association with Harvard Medical International (HMI) of Harvard Medical School.


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