Apollo Hospitals launches Rs 1,000 crore QIP with a floor price of Rs 2,508.58 per share

India's largest private hospital chain Apollo Hospitals Ltd on Monday launched its qualified institutional placement (QIP) offering. The healthcare company seeks to raise as much as Rs 1,000 crore by selling shares to institutional investors.

In a regulatory filing, Apollo Hospitals said, "The Committee approved the preliminary placement document dated 18th January 2021 and decided to open the QIP issue today .i.e., 18th January 2021."

The hospital chain's board has fixed a floor price of Rs 2,508.58 apiece for the share sale, based on the securities and Exchange Board of India's pricing formula as prescribed under Regulation 176(1) of the SEBI ICDR Regulations for such transactions. Pursuant to the regulations, the company may offer a discount of not more than 5% on the floor price so calculated for the Issue.

The proceeds of the QIP will be used in inorganic growth, debt reduction and investment in building digital capabilities.

A QIP is a fundraising route used by listed companies to raise funds by selling equity and equity-linked instruments to only institutional investors.