Fortis to get Rs 2,700 million equity infusion in SRL
Fortis Healthcare Ltd (FHL), one of the largest healthcare chains in Asia Pacific, recently announced that its diagnostic chain subsidiary Super Religare Laboratories (SRL) has signed definite agreements with the high quality investment partners, NYLIM Jacob Ballas India Fund III LLC, Mauritius (NJBIF) and International Finance Corporation (IFC) for an equity investment in the company. NJBIF and IFC will invest Rs 2,500 million respectively in SRL in the form of Compulsory Convertible Preference Shares (CCPS). The conversion of CCPS will be in the price band of Rs 201-220. Post conversion of CCPS, FHL will continue to hold 55-56 per cent equity stake in SRL. The transaction will be subject to customary closing conditions and is expected to take place within this month itself.
Commenting on the development, Vishal Bali, Group CEO, Fortis Healthcare Ltd, said, “We are delighted to have Jacob Ballas and IFC as investment partners in SRL; their interest exhibits the potential of the company as the market leader in diagnostics. We see immense opportunity for growth in the diagnostics vertical both in India and other regions of Asia. The investment will go towards our consolidation strategy to improve market share and create sector leadership. The deal is a testimony to our commitment to provide quality and cutting-edge diagnostics services to our customers in India and around the world and fortifies our resolve to the leading diagnostic services company in the country.”
Srinivas Chidambaram, Managing Director, Jacob Ballas Capital India Pvt Ltd, investment advisor to NJBIF, said, “We are pleased to assist the leading management team in the diagnostics services sector in realising their vision to address the significant pan-India and regional potential in a historically ‘unorganised’ industry, with an emphasis on quality, reliability and service. Having made significant investments in world class diagnostics infrastructure, a team of well qualified healthcare professionals and modern diagnostic techniques, SRL is ideally positioned to benefit patients, healthcare institutions and doctors nationwide.”