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Fortis plans to list pathology unit `Super Religare Labs' next yr.

30 Jul 2010
After walking away from the bidding war for the one of Asia's largest hospital operator `Parkway', Fortis Healthcare Ltd is now planning to list its pathology unit `Super Religare Labs' in India next year.

Super Religare Laboratories Ltd is the platform for the Fortis group for expanding in pathology services business. The company has been pursuing aggressive expansion over the recent period and agreed to acquire Piramal Healthcare Ltd's diagnostics unit for Rs 6 billion ($129 million) on July 14. The acquisition will make Super Religare the biggest pathology company in Asia outside Japan, according to its promoters.

The promoters are now planning to list the company on the pathology company on the Bombay Stock Exchange; however it declined to divulge any details on the quantum of funds that the company is planning to raise through the IPO. Meanwhile Fortis group Chairman Mr. Malvinder Singh has pointed out that the company is also planning to start a health insurance business in India and is currently in talks with the country's regulators for the same. However Mr. Singh did not divulge any timeline for the project to start.

Adding further to the matter Mr. Singh pointed out that Fortis will continue to use Singapore as a base to become a pan-Asia health-care leader and also pointed out that a dedicated team is currently scouting for opportunities in the region. Adding further Mr. Singh said, In Asia we see huge opportunities for health care. We see a substantial demand-supply gap. Asia is in a strong position from a GDP-growth viewpoint and the need for health care.

While providing further insight into the company's plans Mr. Singh who is currently based in Singapore, pointed out that Fortis is looking at investing in the city-state. However he declined to divulge any details on the possible targets and the size of the investment. Further Mr. Singh pointed out that the company is also considering the option of listing its shares in Singapore Market in a bid to tap the capital markets in the city. However he pointed out that how much time it will take is still not clear.

Meanwhile earlier this week the New Delhi-based Fortis had agreed to sell its stake in Parkway Holdings Ltd as Malaysia's Khazanah Nasional Bhd trumped an offer by the Indian company to take over the Singapore-based hospital operator. Commenting on the matter Mr. Singh said, Parkway was a vehicle and platform that we wanted to build upon and leverage in order to achieve our vision. It's not Parkway today, it will be something else. Meanwhile the Fortis stock gained less than 0.1 per cent to reach Rs 157.10 at the 3.30 pm close in Mumbai trading, amidst a 0.2 per cent rise in India's benchmark Sensitive Index.
Source: Religare Technova   Type: IPO Related