Fortis Healthcare Ltd has announced that its board has approved the issuance of non-convertible debentures (NCDs) worth Rs 1,500 crore via private placement. This strategic move is aimed at raising capital in three series, with key anchor investors including DBS Bank, HSBC, Citicorp Investment Bank, and Mizuho Bank. The NCDs, with a tenure of five years, are set to be listed on the BSE. This decision comes as Fortis looks to strengthen its financial foundation amid favorable market conditions, positioning itself for future growth in the healthcare sector.

Fortis Healthcare to Raise Rs 1,500 Crore via NCDs

Fortis Healthcare secures board approval for capital raising by issuing non-convertible debentures (NCDs) worth up to Rs 1,500 crore through private placement. This decision, made during a board meeting on October 9, 2024, highlights the company's strategy to fortify its balance sheet and attract significant investor interest.

Private Placement to Select Eligible Investors

The NCDs will be issued on a private placement basis to eligible investors, including top-tier financial institutions. Among the key investors are DBS Bank Ltd, HSBC, Citicorp Investment Bank (Singapore) Ltd, and Mizuho Bank, Singapore. Foreign portfolio investors (FPIs) qualified through the bidding process are also eligible to participate, reflecting strong international interest.

Breakdown of the Series and Key Investors

The Rs 1,500 crore will be raised in three series, each anchored by major financial players: - Series 1: Rs 500 crore, with DBS Bank Ltd as the anchor investor. - Series 2: Rs 500 crore, anchored by HSBC via its GIFT Foreign Portfolio Investor (FPI). - Series 3: Rs 500 crore, with Citicorp Investment Bank (Singapore) Ltd and Mizuho Bank, Singapore, acting as anchor investors.
This diversified participation signals confidence from global financial institutions in Fortis Healthcare’s growth prospects.

Tenure and Listing Details

The NCDs will carry a tenure of five years, beginning from the date of allotment. Fortis Healthcare plans to list these debentures on the Bombay Stock Exchange (BSE), further enhancing their visibility and liquidity in the capital markets. This strategic move is expected to attract both domestic and foreign investors, boosting the company’s financial standing.

Positive Market Reaction

Fortis Healthcare shares gained momentum following the announcement, closing 1.73% higher at Rs 607.40 per share on the BSE. The positive market response reflects investor optimism surrounding the company’s capital-raising efforts and its strong positioning in the healthcare sector.
By raising substantial capital through NCDs, Fortis Healthcare is reinforcing its financial base, ensuring liquidity for future expansion and operational needs. This move underscores the company's commitment to long-term growth and its appeal to both domestic and global investors.