Fortis Healthcare announced that Religare Health Trust (RHT), of which it is the sponsor, successfully raised approximately S$510.7 million by listing its units on the Singapore Exchange (SGX). This marks the largest initial public offering (IPO) of a business trust sponsored by an Indian company in Singapore. It is also the second largest primary listing in Singapore so far, this year. Following the listing Fortis will, through its wholly-owned overseas subsidiary, continue to hold 28 per cent stake in RHT.
Welcoming the listing, Malvinder Singh, Executive Chairman, Fortis Healthcare, said, “We see this as a groundbreaking development for the entire healthcare sector. The increasing demand supply gap in healthcare delivery requires a significant increase in investment. By pursuing this model we are focusing on our core strength of delivering superior healthcare services with an emphasis on specialisation and widening the access to quality medical care.”
Hailing the listing as a positive development for healthcare, Shivinder Singh, Executive Vice Chairman, Fortis Healthcare, said, “The offering endorses the high level of interest among investors in the healthcare space and the intrinsic support for a progressive and modern business model. The Indian healthcare industry is gaining momentum on the back of multiple growth drivers including increasing demand for specialised and quality healthcare.”
Singh, added, “We see tremendous opportunity in the sector and the creation of this asset light model gives us the ability to consolidate our business and access funds to sustain and accelerate growth.”
The hospital and diagnostic business in India has attracted foreign direct investment worth $ 1.1 billion (Source Frost & Sullivan) between April 2000 and July 2011 and the success of the IPO puts India squarely on the map for the inflow of more funds into the sector, aided by strong demand for healthcare which is expected to reach $ 119.6 billion by 2015. The move allows Fortis to follow an asset light strategy and align its business with internationally emerging trends. Globally, healthcare delivery models are evolving towards innovative and cost effective methods. This transformation will help the company to grow faster and enables it to provide state-of-the-art medical and healthcare services focused on quality and efficiency.
EH News Bureau
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