Fortis Healthcare rights issue 2:5 ratio

Fortis Healthcare has said that the issue committee of the directors of the company has fixed 2:5 ratio for its rights issue i.e. 2 new shares for every 5 shares held.

Apart from this, the subscribers to the rights issue will also be entitled to 2 detachable warrants (one each of Series A and Series B) for every 2 rights shares allotted.

These detachable warrants can be called upon by the company, at its option, within the given time frame, in future.

The company has fixed the price for its rights issue at Rs 110 per share, consisting Rs 10 as the face value and Rs 100 towards the premium. The size of the rights issue will be Rs 997 crore.

The proceeds of its rights issue would be used for funding greenfield projects, including green field project in Gurgaon, redemption of preference shares, repayment of short term debt, upgradation of its existing facilities and tapping future investment opportunities for growth, as mentioned in its filing with the BSE.

The issue is scheduled to open in the first fortnight of September 2009.