Fortis Healthcare Ltd, India’s fastest growing healthcare chain, has decided to pay around 1 trillion rupees ($20.57 billion) to acquire 10 hospitals from unlisted Wockhardt Hospitals.
The official announcement regarding the deal is expected to come on Monday.
At present, Fortis has 28 hospitals with a total capacity of 3,300 beds. The company plans to take the total number of hospitals to 40 with a total capacity of 6,000 beds by 2011.
Last week, Fortis approved a rights issue to raise Rs 997 crore. The company will issue shares in the ratio of 2:5. Shareholders of the company would get two equity shares for every five stocks held, at a price of Rs 110 per share.
Nishant Jain, Director of Tradeswift Broking, is of the view that Fortis Healthcare may touch target of Rs 120 in the short term.
The scrip of the company closed on Friday at Rs 109. The counter has made 52-week-high and low of Rs 119 and Rs 61 respectively.