City-based healthcare company Apollo Hospitals will raise Rs 250 crore from International Finance Corp (IFC) to fund expansion programmes, said a top company official in Chennai on Monday.
Sharing the financial results of the company for 2008-09 with reporters, Apollo finance director Suneeta Reddy said: "We have lined up expansion projects worth Rs 1,500 crore. Out of this, Rs 500 crore has already been spent on land acquisition and construction. We have raised Rs 300 crore from mutual funds in 2007 and the promoter family has brought in Rs 120 crore. The balance will be in debt."
According to her, the company's total debt at the end of last fiscal was around Rs 390 crore and the average cost of debt is around 11 percent.
The company's board of directors approved raising of $15,000,000 by issuing foreign currency convertible bonds (FCCB) and $35 million through external commercial borrowing (ECB) from IFC.
Apollo Hospitals needs the funds to build 12 hospitals in tier-II cities under the brand Apollo Reach Hospitals.
"Six projects are under construction and these will be ready in less than two years. The plan is to build 15 hospitals to add 2,400 beds," said the group's executive chairman Prathap C Reddy.
The company closed last fiscal with a turnover of Rs 1,457.98 crore and a net profit of Rs 118.07 crore as against Rs 1,125.39 crore and Rs 101.75 earned during 2007-08 respectively.
The board has recommended a dividend of 65 per cent for the year under review.
The net profit would have been higher had it not been for a Rs 3-crore forex loss and a Rs 4 crore out-of-court settlement of a dispute with Belhoul Hospital, Dubai, and the company's pharmacy division posting a loss of Rs.22 crore.