Fortis Healthcare is mulling an Institutional Placement Program for sale of 8% of its stake and the company may use funds to retire debt, reports Aakansha Sethi of CNBC-TV18 quoting sources.
Fortis Healthcare has a public shareholding of about 18.52% and they need to adhere to the minimum shareholding norm of 25% by June 2013. Sources claim that they are looking at an Institutional Placement Program (IPP) for selling about 8% stake. The company is also keen to get funds to retire its debt of about Rs 6,237 crore.
They are also mulling an offer for sale (OFS) option considering that they need money to retire this debt. The management is keen on an IPP because they can raise fresh equity through this or promoters can sell their stakes, whereas in an OFS promoters will have to sell their stake. The final decision is yet to be taken as also the time for the sale.
Though, it has not been finalized as yet, a 8% stake sale before June 2013 is on the cards.
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