Fortis raises $66m from Jacob Ballas, IFC for Super Religare
Bangalore-based Fortis Healthcare has reached agreements with Jacob Ballas Capital and the International Finance Corporation (IFC) to raise INR3.7 billion ($66.4 million) for its diagnostics unit Super Religare Laboratories (SRL).
Jacob Ballas will invest INR2.5 billion and IFC will contribute another INR1.2 billion, in the form of compulsorily convertible preference shares. The conversion price will be INR201-220. After the conversion, Fortis Healthcare will continue to own 55-56% of SRL.
The transaction is expected to take place within this month. The proceeds will be used to develop SRL's existing network, Fortis said in a statement filed to Bombay Stock Exchange on Tuesday.
This will be the third round of private equity investment in the diagnostics company. Sabre Partners and Avigo Capital Partners also invested a total amount of INR1.5 billion in 2011.
"We are delighted to have Jacob Ballas and IFC as investment partners in SRL. Their interest exhibits the potential of the company as a market leader in diagnostics," said Vishal Bali, CEO of Fortis. "We see immense opportunity for growth in the diagnostics vertical both in India and other regions of Asia."
As of March 2012, SRL had a network of eight reference laboratories, eight centers of excellence, 208 network laboratories, 21 wellness centers and in excess of 1088 collection centers, of which 32 are established aboard.
"We are pleased to assist the leading management team in the diagnostic services sector in realizing their vision to address the significant pan-India and regional potential in a historically unorganized industry, with an emphasis on quality, reliability and service," said Srinivas Chidambaram, managing director of Jacob Ballas Capital India.
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