Fortis Healthcare to raise Rs 1,000 crore through rights issue

Fortis Healthcare CEO & MD Shivinder Singh on Christmas day announced plans to raise Rs 1,000 crore through a rights issue.

The money would be used to fund the company’s greenfield projects and restructure the balance sheet, besides being utilised for other investment opportunities.The share ratio and issue price of the rights issue would be finalised by February-end.

The company is setting up a medicity in Gurgaon and three new hospitals in Mumbai, West Delhi and Gurgaon. Fortis’.Last year, Fortis Healthcare raised Rs 496 crore through its maiden public issue and the promoters currently own 74.4% in the company. At present, Fortis Healthcare has 23 hospitals and plans to increase it to 40 hospitals by 2011.


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Jet Air plans to dilute 10% stake

Jet Airways is planning to dilute 10 per cent stake of the company in favour of foreign institutional investors and private equity players, K G Vishwanath, general manager-finance, said.“The decision was taken about three weeks ago,” Vishwanath said, but declined to disclose the price at which the stake will be sold.The stake sale will be conducted prior to the rights issue of equity shares through which the company plans to raise about $400 million.

Vishwanath said the rights share issue will be launched when market conditions are more favourable. Valuation is being determined, he added. “The extent of stake dilution by the promoter will be dependent on the valuation,” he said.

Goyal currently holds close to 80 per cent stake in the company. In January, Jet Airways’ board authorised the management to raise up to $800 million through qualified institutional placement and other modes, including the $400 million rights share issue.

SBI’s rights issue fully subscribed

A $4.1 billion rights issue by State Bank of India, India’s largest bank, was fully covered on Tuesday, despite the global financial turmoil that knocked its shares down by nearly a third during the offer period.

The state-run bank offered investors one share at Rs1,590 for every five held, looking to raise Rs16,736 crore to meet demand for loans in a growing economy. It was the bank’s first share sale in more than a decade.

The Bank of New York with a 7.42% stake through SBI’s global depository receipts and state-run Life Insurance Corp. of India with a 3.6% stake are the largest shareholders in the bank after the government.The government said last month it would invest Rs9,996 crore to maintain its 59.73% stake in the bank.

Citigroup, CLSA India, Deutsche Bank, DSP Merrill Lynch, Kotak Investment Bank and SBI Capital Markets are the lead managers to the issue.

Read more in The Livemint article.

SBI rights at a 35% discount

State Bank of India, the public sector banking giant, has priced its rights issue at a 35% discount to its closing price on Friday.The bank, 59.73% government-owned, will raise Rs 16,736 crore by offering one share for every five held at Rs 1,590 apiece, a discount to its Rs 2,437.25 stock price on January 11. The cut-off date for the issue is February 4.

The discount should act as an extra incentive for investors of the bank which has seen its stock price soar 101% in the last one year — from Rs 1,222 to Rs 2,462 currently. The stock closed at Rs 2,462.25 on Monday.

Sources said the bank plans to sell over 10 crore shares, of which 86 lakh will be reserved for employees holding shares of the bank, the first such instance among public sector banks.

Officials said the price of the issue was arrived at using the one-year average, which came to Rs 1,533 per share.

The bank’s capital will grow to Rs 650 crore from the existing Rs 526.30 crore.Analysts said a lower discount could possibly allow the bank to raise more money, but the discount will ensure that the issue will “cruise through”.

Read more in The DNA Money article.

Jet Airways delays $400 mn rights issue

Jet Airways Ltd, India's top private airline, is delaying a planned $400 million rights issue because of the recent turmoil in global credit markets, its chairman said on Tuesday. "It is delayed by two to three months, but we are OK even without the rights issue," Naresh Goyal told reporters at a news conference ahead of its first New Delhi- Toronto flight.

"Banks are still willing to lend, but we have decided to delay it." Jet's Airways' board had approved raising up to $400 million by way of a rights issue in June to finance its expansion and overhaul of Air Sahara, which it bought in April.

Jet has said it is looking at increasing the share of overseas operations to half its revenue by 2009 as the Indian market becomes increasingly competitive. India's aviation market is forecast to expand at more than 20 per cent annually till 2010.

Read more in The Economic Times article.

DBS Chola to raise Rs 200 cr via rights issue

Financial services firm Cholamandalam DBS today said it will raise up to Rs 200 crore through a rights issue.The company's board of directors approved issue of 1.42 crore equity shares with detachable warrants in the ratio of three new shares for every eight held, Cholamandalam DBS informed the Bombay Stock Exchange (BSE).

The shares would be issued at Rs 140 each and one detachable warrant would be issued with every rights share allotted to the shareholders, it said.The maximum cap price on warrants to be converted into equity shares would be Rs 275 per share. The record date for the issue has been fixed as September 18.

Indian Hotels to raise Rs 1,900 cr

Indian Hotels Company Ltd, the Tata group firm that operates the Taj chain of hotels, has decided to collect around Rs 1,700-1,900 crore through two rights issues to meet its long-term requirement for capital for expansion, including acquisitions.

The company will raise Rs 844 crore through a rights offer for equity shareholders, while it will mop up Rs 900-1,080 crore through a similar offer for unsecured convertible debenture-holders. The exact size of the fund collection through the rights offer of debentures will be determined at the time of the issue.

The company will offer one rights share to shareholders for every five shares they hold. The offer will be priced at Rs 70 apiece. Debenture holders will get one debenture for every 10 they hold. The debentures will carry a coupon rate of 4 per cent for five years. The debentures can be converted after two years at a price of Rs 150-180 apiece.

Earlier this month, the shareholders of Indian Hotels Company passed a resolution to bring down the limit of foreign institutional investors’ (FIIs’) holding in the company from 40 per cent to 30 per cent. FIIs currently hold 23.4 per cent and the promoters, 29 per cent. The company’s equity capital stands at Rs 60.29 crore.

Read more in The Business Standard article.

Jet Airways' $400 m rights by mid-Oct

The proposed $400 million rights issue of Naresh Goyal-promoted private airline Jet Airways will hit the capital market by mid-October.

Jet Airways, which recently acquired Air Sahara (now JetLite) for Rs 1,450 crore, is currently in the process of filing a prospectus with market regulator Securities and Exchange Board of India (Sebi).

Jet Airways has appointed HSBC and SSKI as merchant bankers to the rights issue, which will be used for acquisition of aircraft.

Goyal holds 80 per cent share in Jet Airways, while the remaining stake is with the public. Meanwhile, Jet Airways today launched its flight connecting India and the US, with daily flights from Mumbai to Newark via its hub in Brussels.

Read more in The Business Standard article.

Tata Steel to raise $2.5 bn to fund Corus buy

Tata Steel, which acquired Anglo-Dutch steel maker Corus in January, will raise over Rs10,000 crore ($2.5 billion) through issue of securities in domestic and overseas market to part finance the acquisition.

The company, in a notice to shareholders, said it would come out with a rights issue of ordinary shares and cumulative convertible preference (CCP) shares, besides issue of securities in the domestic or international markets.

While the company plans to raise Rs3,655 crore through the rights issue, another Rs4,350 crore would be raised through issue of CCP shares. Existing shareholders would get one share at Rs300 for every five ordinary shares held.It would also raise additional funds up to to $500 million (Rs2,042 crore) from the domestic and international markets.
Tata Steel said to facilitate issue of CCP shares, the authorised share capital would have to be raised from Rs2,000 crore to Rs8,000 crore.Tata Steel had paid $4.1 billion towards the $12.9 billion acquisition of Corus

Jet Airways plans to raise $400 mn

Private carrier Jet Airways, which recently acquired rival Air Sahara, said on 19 June it plans to raise $400 million (Rs1,600 crore).“The board of directors at its meeting on 26 June would consider issuance of equity shares on a rights basis for an amount of up to $400 million or an equivalent amount in Indian Rupees,” Jet Airways informed Bombay Stock Exchange.

The proposal comes close on the heels of Jet Airways buying Air Sahara in April this year and its plans to launch low-cost arm, JetLite, in the next few months.The company would also consider the audited financial results for the fourth quarter and year ended 31 March and recommend dividend for 2006-07.

The shares of Jet were up 1.06% in intra-day trading at Rs793.10 on the BSE.
Jet Airways executive director Saroj Dutta had said earlier this month the company was open to raise additional resources to fund its expansion plans.The airline chief Naresh Goyal had said earlier that all necessary government clearances for JetLite had been received and the company might operate JetLite on international sectors in the future.