Apollo Hospitals will add 2,200 beds over the next two years with an estimated investment of Rs 1,000 crore. While works on some of the projects have commenced, a detailed study has been undertaken on a select few. The company has already spent over Rs 200 crore in these projects spread across the country.
According to sources, group chairman Pratap C Reddy has decided to chip in Rs 120 crore by subscribing to 15.44 lakh additional warrants (or around 1.5%) at an estimated price of around Rs 772 each, thereby increasing his personal stake in the company to around 5% (4.93% to be precise). Following this, the promoters' stake will go up to around 38%, sources said. The board has also decided to induct Sindhoori Reddy, daughter of Suneeta Reddy, executive director (finance), and one of the core promoters of the Apollo Hospitals and daughter of Pratap Reddy.
The company, which owns and manages close to 8,500 beds in 50 hospitals, is looking at taking its total bed size beyond 10,000 in two years.
When contacted, a senior official of the company said: "Nearly 60% of the said Rs 1,000 crore will be that of equity and will be pooled from the company's internal accruals as well as borrowings, while the remaining will be sourced from banks and financial institutions as debt."
The funds raised from the chairman's subscription would be utilised in expansion, meeting additional working capital requirements and general corporate expenditure, the official said.
During the current financial year, the company will add a little over 500 beds in Hyderabad, Bhubaneshwar, Lavasa and Kolkata. In the next financial year, nearly 815 beds will be added across six locations, including Hyderabad, Secunderabad, Nellore. In the third phase, around 840 beds will be added in cities including Thane, Nasik, Vizag and Trichy, the official said. “We will be investing close to Rs 1,000 crore in three years,” he added.
