Fortis sponsored RHT raises SGD 510.7 mn on Singapore Exchange
New Delhi: Fortis Healthcare today said the company's sponsored Religare Health Trust (RHT) has raised nearly SGD 510.7 million (about Rs 2,260 crore) by listing its units on the Singapore Exchange.
The proceeds from the listing will be utilised by RHT for repayment of debt and other liabilities incurred for the acquisition of the hospital services companies and the initial portfolio, among others, the company said in a statement.
Following the listing, Fortis will continue to hold 28 percent stake in RHT through its wholly-owned overseas subsidiary, it added.
Commenting on the listing, Fortis Healthcare Executive Chairman Malvinder Singh said: "The increasing demand-supply gap in healthcare delivery requires a significant increase in investment.
"By pursuing this model we are focusing on our core strength of delivering superior healthcare services with an emphasis on specialisation and widening the access to quality medical care".
The move allows Fortis to follow an asset light strategy and align its business with internationally emerging trends, the company said.
"We see tremendous opportunity in the sector and the creation of this asset light model gives us the ability to consolidate our business and access funds to sustain and accelerate growth," Singh added.
Fortis Healthcare Ltd Executive Vice-Chairman Shivinder Singh said the offering endorsed the high level of interest among investors in the healthcare space and the intrinsic support for a progressive and modern business model.
Fortis Healthcare further said pursuant to the IPO in Singapore, Escorts Hospital and Research Centre Ltd, Escorts Heart and Super Speciality Hospital Ltd will cease to be wholly owned subsidiaries of the company.
Similarly, Escorts Heart and Super Speciality Institute Ltd, Fortis Health Management Ltd, Hospitalia Eastern Pvt Ltd, International Hospital Ltd, Kanishka Healthcare Ltd and Fortis Hospotel Ltd would also not be its wholly owned subsidiaries following the IPO.
"The company would, through its wholly owned overseas subsidiary, continue to hold approximately 28 percent units of RHT and consequently in all above entities," it added.
Fortis Healthcare is currently present in 10 countries. It also has a pan India presence with 66 healthcare delivery facilities and has been growing its operations in India in the two key verticals of Hospitals and Diagnostics.