International Finance Corporation (IFC) has increased its stake in
Apollo Hospitals Enterprise Ltd (AHEL) by converting its Foreign
Currency Convertible Bonds (FCCBs) into equity. The value of shares
converted into equity is estimated to be around Rs 90 crore, with the
current market price.
Post this conversion, there are no outstanding FCCBs with the company, said company sources. It may be noted, the World Bank's arm has infused $15 million in AHEL in 2009 for 1500 Unsecured FCCBs of $10,000 each. As per the terms of the FCCB loan agreement IFC had an option to convert the FCCBs wholly or partly from time to time into equity shares.
IFC earlier in 20110 converted 50 per cent of the FCCB loan amount aggregating to $7.50 million were converted into 1,140,992 equity shares of Rs 5 each and the said equity shares were alloted in December 2010 to IFC by AHEL.
Based on the applicable rupee dollar exchange rate as on May 25, 2012, it has been determined that a total of 1,381,619 equity shares of Rs 5 each would need to be alloted to IFC upon effecting the conversation, said Apollo Hospitals. The board of directors of the company met on Thursday and approved the allotment of 1,381,619 equity shares to IFC.
At present Reddy holds around 32-33% in the company. The development comes at a time the hospital chain is planning to invest around Rs 1,939 crore to expand its number of beds, through green and brownfield projects. Of the total investment, Apollo's share would be around Rs 1,748 crore.
The investment plan will be upto 2015.
Post this conversion, there are no outstanding FCCBs with the company, said company sources. It may be noted, the World Bank's arm has infused $15 million in AHEL in 2009 for 1500 Unsecured FCCBs of $10,000 each. As per the terms of the FCCB loan agreement IFC had an option to convert the FCCBs wholly or partly from time to time into equity shares.
IFC earlier in 20110 converted 50 per cent of the FCCB loan amount aggregating to $7.50 million were converted into 1,140,992 equity shares of Rs 5 each and the said equity shares were alloted in December 2010 to IFC by AHEL.
Based on the applicable rupee dollar exchange rate as on May 25, 2012, it has been determined that a total of 1,381,619 equity shares of Rs 5 each would need to be alloted to IFC upon effecting the conversation, said Apollo Hospitals. The board of directors of the company met on Thursday and approved the allotment of 1,381,619 equity shares to IFC.
At present Reddy holds around 32-33% in the company. The development comes at a time the hospital chain is planning to invest around Rs 1,939 crore to expand its number of beds, through green and brownfield projects. Of the total investment, Apollo's share would be around Rs 1,748 crore.
The investment plan will be upto 2015.
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