Apollo Hospitals promoter group will issue 50 lakh shares to reduce stake
The promoter group family of Apollo Hospitals Enterprise Ltd (AHEL) will be issuing five million shares through secondary placement to raise around $101 million (Rs 720 crore).
The aim is to reduce the promoters' pledged shares in the company. The deal, for which Citi Group is acting as placement agent and building the book (the term for getting enough investors to buy into a new share issue), is expected to happen in a day or two.
A combination of foreign and domestic institutional investors are expected to participate, said sources. The floor price is Rs 1,450 a share. Around 3.6 per cent of all shares in the company would be covered and Rs 750 crore is expected, going by the floor price, said market sources.
After the sale, promoter group shares will come down to around 30.8 per cent of the total equity, from the current 34.4 per cent. Withthis and the money to come through sale of stake in Apollo Munich Helath Insurance, the company is expected to bring down the promoter group's pledged shares to around 20 per cent.
The latter deal, said company sources, was expected to be consummated next month. Bringing down the stake is a commitment the promoters had made to minority shareholders.