Apollo Hospitals to allot shares, warrants on preferential basis

Apollo Hospitals Enterprise Ltd has announced that the Board of Directors of the Company at its meeting held on August 31, 2007, has recommended the following:

1. Issue of up to 1,549,157 (3% of existing capital of the Company) warrants convertible into equity shares to the promoters / promoter group at a price not less than the price calculated in accordance with SEBI (Disclosure and Investor Protection) Guidelines for preferential issue.

2. Issue of up to 7,047,119 equity shares of Rs 10/- each on a preferential basis to funds advised by Apax Partners ("Apax") at a price of Rs 605.07 per equity share. Apax will invest up to Rs 4264 million (approx US$ 104 million) in the Company.

The investment is in accordance with Chapter XIII of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines, 2000 and is subject to shareholder approvals, necessary regulatory approvals and final closing conditions.

The Extraordinary General Meeting of the Company is to be convened on October 05, 2007 for obtaining members approval for the above said issues.

The Company plans to use the funds raised through preferential allotment for meeting its future growth plans of setting up new hospitals and expanding other healthcare facilities.

Source : Equity Bulls

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