The Hindu Business Line : Fortis buys Hiranandani Hospital for Rs 25 cr

HEALTHCARE EXPANSION: Mr Harpal Singh, Chairman, Ranbaxy, flanked by Mr Shvinder Mohan Singh (left), Managing Director, Fortis Healthcare Ltd, and Mr Malvinder Singh, Managing Director and CEO, Ranbaxy, at a press conference to announce the IPO of Fortis Healthcare in Mumbai on Wednesday. - Paul Noronha

Mumbai April 4 Fortis Healthcare has broken into the Mumbai market through its acquisition of the Hiranandani Hospital at Navi Mumbai for Rs 25 crore.

The hospital, the 12th in the network established by Fortis, a Ranbaxy-promoter group company, is a 152-bed institution and is expected to start operations this financial year, a top official with Fortis said.

Mr Shivinder M. Singh, Fortis' Chief Executive Officer and Managing Director, said that the group is poised for growth in its several businesses in healthcare, nurse staffing and the recently launched retail network of health-shops.

Branded as Fortis Healthworld, the pharmacies would be one-stop shops offering different systems of medicine, besides other services, he said.

The company targets 1,000 outlets by 2012, at an investment of Rs 800 crore.

Meanwhile, on the Fortis initial public offering (IPO), Mr Singh said that post-public issue the promoter family would hold 75 per cent equity in Fortis. Of this, Ranbaxy's equity would get diluted from 8 per cent to 6 per cent.

Fortis is entering the capital market with an IPO of 45,996,439 equity shares of Rs 10 each for cash at a premium to be decided through a 100 per cent book building process. The price band has been fixed between Rs 92 and Rs 110 per equity share.

The company has concluded four pre-IPO allotments to Mr Raj Kumar Bagri (10 lakh equity shares), Mr Apurv Bagri (10 lakh equity shares), Trinity Capital (Eight) Ltd (80 lakh equity shares) and Vasco Inc (6.70 lakh equity shares).

Drug-maker Ranbaxy is close to assessing a second molecule from its research alliance with GlaxoSmithKline, Mr Malvinder Singh, Chief Executive Manager and Managing Director, Ranbaxy, told newspersons. Ranbaxy had, earlier this week, announced the candidate selection of a compound for respiratory inflammation. He also indicated that a milestone payment was on the cards for this molecule, but did not divulge details.