Apollo Hospitals gains 4%, hits new high on successful fund raising via QIP




Shares of Enterprises jumped 4 per cent in intra-day trade on Monday to hit a new high of Rs 2,688, in an otherwise subdued market, after the company said it has raised Rs 1,170 crore via qualified institutional placement (QIP) issue. The stock surpassed its previous high of Rs 2,683 touched on January 21.


In the past three months, the stock has outperformed the market by surging 30 per cent as compared to a 20 per cent rise in the S&P BSE Sensex. At 01:32 pm, the benchmark index was up 0.07 per cent at 48,911.



Enterprises, engaged in healthcare facilities business, has allotted 4.66 million equity shares to 102 qualified institutional buyers (QIBs) at a price of Rs 2,511 per share, according to a disclosure made by the company to stock exchanges. It had the fixed floor price at Rs 2,508.58 per share.


Universities Superannuation Scheme (USSL) as trustee of Universities Superannuation Scheme allotted 436,000 equity shares worth Rs 110 crore of the company. Aditya Birla Sun Life Trustee, HDFC Life Insurance, SBI Life Insurance, Society General, Fidelity Funds and HSBC Global Investments Funds are among QIBs allotted equity shares of more than of Rs 30 crore, data shows.


said it will use the funds raised to acquire a 50 per cent stake in a joint venture, seek inorganic growth opportunities, as well as, look to pare down debt in its balance sheet.


“Our company proposes to utilize the net proceeds for financing, in part, acquisition of the 50 per cent equity stake held by Gleneagles Development (GDPL) in Apollo Gleneagles Hospital Limited (AGHL), pursuant to the share purchase agreement dated November 11, 2020 executed among our company, GDPL and AGHL for an aggregate purchase consideration of Rs 410 crore,” said an offer document filed by the company with the stock exchanges.


The funds should be utilized for funding inorganic growth opportunities, investing in technological and digital initiatives, including enabling the development of our digital platform “Apollo 24/7” into a comprehensive, integrated healthcare system and/or strengthening other digital platforms for an amount not exceeding Rs 150 crore and pre-payment and/or repayment of outstanding borrowings, it said.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link