Fortis Healthcare, India's fastest growing healthcare chain, has secured nod from the Securities and Exchange Board of India (SEBI) for its plans to raise funds by way of issue of equity shares with warrants on a rights basis at a price of Rs 110 per equity share (consisting of Rs 10/- as the face value and Rs 100/- towards the premium), amounting to Rs 997 Crore (excluding the value of warrants).

The proceeds of the rights issue would be utilized primarily for funding Greenfield projects including the upcoming green field project in Gurgaon, redemption of preference shares, repayment of Short Term Debt, up gradation of existing facilities and part funding for the acquisition of 10 hospitals from Wockhardt Hospitals Ltd.

It should be noted that the shareholders of the company shall be entitled to subscribe to 2 right shares for every 5 equity shares held as on the record date. The right issue is likely to open by the end of this month.

The shares of Fortis Healthcare today closed at Rs 111 on BSE, up 2% compared to previous close of Rs 109.