M Cap: Rs 2,951 cr
During the last fortnight, Apollo hospital has seen more than 27 times increase in trading volumes and close to 80 per cent average delivery volumes. Sangita Reddy, a promoter of Apollo hospitals, was allotted 15.50 lakh shares of Rs 10 each at Rs 442.55 a share following the conversion of share warrants allotted to her on February 23, 2007. The company is planning to acquire 30 per cent stake in a hospital in Nigeria for around Rs 52 crore. According to the management, the group is also planning to invest in a greenfield 200-bed hospital in Ethiopia. The group has also chalked out a Rs 10,000 crore investment plan to set up 250 small and medium sized multi-specialty hospitals aggregating to 31,250 beds over the next seven years. These hospitals will be set up under a new brand name Apollo Reach, which will be funded with a combination of debt and equity. The first phase of 25 hospitals that will cost Rs 1000 crore will have infusion of promoters’ equity (through warrant conversions) to the extent of Rs 160 crore. The group will use its cash reserves of Rs 400 crore to part fund the project and rely on Rs 150 crore on the year’s cash flow.
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