Wockhardt Hosp IPO not open yet, waiting for regulatory nod, Price Band Reduced to Rs. 225 to Rs.260

Wockhardt Hospitals is supposed to open today, January 31, 2008 and will close on February 5, 2008 but not open yet. The company has reduced its price band to Rs 225-260 from Rs 280-310 per share, for which it still has not got regulatory nod, reports CNBC-TV18.

Its initial public offering (IPO) is of 25,087,097 equity shares of Rs 10 each for cash at a price determined through a 100% book building process.

The issue comprises a net issue to the public of 24,587,097 equity shares of Rs 10 each and a reservation of upto 500,000 equity shares for subscription by eligible employees. The issue will constitute 24.06% of the post-issue paid up equity share capital of the company.

Wockhardt Hospitals intends to utilise the proceeds from the issue to meet the cost of development and construction of greenfield and brownfield hospitals of the Company, prepay some of the short term loans and to meet general corporate expenses.

The equity shares are proposed to be listed on Bombay Stock Exchange and the National Stock Exchange of India.

The joint global co-ordinators and book running lead managers to the Issue are Citigroup Global Markets India Private Limited and Kotak Mahindra Capital Company Limited. The book running lead managers to the Issue are SBI Capital Markets Limited and ICICI Securities Limited.