Fortis Healthcare To Raise Funds Through NCDs For Acquisition Of Agilus Diagnostics

Fortis Healthcare Ltd. on Friday announced that it will raise funds through non-convertible debentures to acquire an additional 31.52% stake in Agilus Diagnostics Ltd. from the PE investors.

At present, the private hospital chain holds a 57.69% stake in Adilus Diagnostics, the company said through an exchange filing.

Currently, International Finance Corp. holds a 7.61% stake, while NYLIM Jacob Ballas India Fund III LLC. and Resurgence PE Investments Ltd. hold 15.86% and 8.05% stakes, respectively. International Finance Corp., NYLIM Jacob Ballas India Fund III and Resurgence PE Investments are collectively referred to as PE investors.

According to the shareholder agreement signed on June 12, 2012, PE investors have certain exit rights that include exit through exercise of a put option requiring Fortis Healthcare to acquire the stakes at a fair market value.

The board on Friday approved fundraising through the issuance of listed, senior, secured, and rated NCDs to eligible investors, including but not limited to foreign portfolio investors in one or more tranches.

The company, through its regulatory filing, also announced that it is issuing a postal ballot notice to its members to seek approval on different proposals, including the acquisition of Adilus Diagnostics.

Fortis Healthcare's stock rose as much as 4.49% during the day to Rs 563 apiece on the NSE. The stock closed 2.41% higher at Rs 551.80 per share. This compares with a 0.34% advance in the benchmark Nifty 50. It has risen 66.25% in the last 12 months and 25.52% year-to-date.