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Friday, August 24, 2007

Wockhardt Hospitals files DRHP with Sebi

Wockhardt Hospitals, a subsidiary of Wockhardt, is planning to enter capital markets with an initial public offering (IPO) of 3,00,00,000 equity shares of Rs 10 each for cash with 100% book building process. The company has filed draft red herring prospectus (DRHP) with market regulator, SEBI on August 23, 2007.

The issue comprises a net issue to the public of 2,95,00,000 equity shares of Rs 10 each (the net issue) and a reservation of upto 5,00,000 equity shares for subscription by eligible employees. The issue will constitute 28.77% of the post-issue paid up equity share capital of the company.

Up to 50% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers (QIBs), out of which 5% shall be available for allocation on a proportionate basis to mutual funds only. The remainder shall be available for allocation on a proportionate basis to QIBs and mutual funds, subject to valid bids being received from them at or above the issue price.

Further, at least 15% of the issue will be available for allocation on a proportionate basis to non-institutional bidders and at least 35% of the issue will be available for allocation on a proportionate basis to Retail individual bidders, subject to valid bids being received at or above the issue price.

The company intends to utilise the proceeds from the issue to meet the cost of development and construction of greenfield and brownfield hospitals of the company, prepay some of the short term loans and to meet general corporate expenses.

The company is considering a Pre-IPO placement of up to 7,500,000 equity shares with certain investors. If the Pre-IPO Placement is completed the issue size offered to the public will be reduced to the extent of such Pre-IPO Placement, subject to a minimum net issue size of 10% of the post Issue capital being offered to the public.

The equity shares are proposed to be listed on the BSE and NSE.

Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company are the book running lead managers to the issue and Intime Spectrum Registry is the registrar.

The company has reported income of Rs 77.5 crore for quarter ended June 2007 (three months) and net profit after tax at Rs 1.15 crore. For the year ended March 2007, it has posted income of Rs 236.7 crore and net profit after tax at Rs 15.59 crore.

It has a pan-India presence with a network of eight super-specialty hospitals and four regional specialty intensive care unit (ICU) hospitals providing healthcare services in western, southern and eastern India.

It has a capacity of approximately 1,090 inpatient beds in use across network of 12 facilities. The company is targeting 1,798 new beds by March 31, 2009

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