Fortis Healthcare, FHL, one of the largest private healthcare companies in India, announced the signing of a definitive agreement (pre-IPO agreement) for allotment of 6.7 lakh equity shares to VASCO, an investment arm of McKinsey & Company, for an investment amount of Rs 106.89 million.
VASCO has been allotted the equity shares at a fixed price of Rs 159.50 per share. 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 recently signed a pre-IPO agreement with Trinity Capital for allotment of 6 million shares for Rs 870 million. The company had earlier signed two pre-IPO agreements in December 2006, and another in January 2007 for allotment of a total of 4 million shares for Rs 560 million. 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.
Shivinder Mohan Singh, managing director, Fortis Healthcare and Escorts Heart said, “We are happy to welcome VASCO as an investor in Fortis. Last year, McKinsey helped us create our vision, mission and growth strategy for the next 5 years and in the process, have gained an understanding of our organization and the opportunity in the healthcare sector. We hope to benefit from and build on this association.”
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 hospitals that FHL manages include Fortis La Femme, a “boutique” style hospital that focuses on women's health and maternity care.
The book running lead managers to the issue are JM Morgan Stanley, Citigroup Global Markets India and Kotak Mahindra Capital Company.
Source : moneycontrol