India’s Artemis Medicare Services has entered definitive agreements with International Finance Corporation (IFC), a World Bank Group member, to raise Rs3.3bn ($39.6m) through Compulsorily Convertible Debentures (CCDs).
The company’s board of directors approved the issuance of up to 33,000 CCDs to IFC on a private placement basis.
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Citing Artemis Medicare Services’ regulatory filing, ETHealthworld.com reported that the CCDs, approved by the board on 5 April, will be convertible into equity shares at Rs174.03 apiece, potentially resulting in a maximum of 18,962,247 new shares.
The conversion is set to occur within 18 months from the allotment date.
In addition, Artemis and IFC have agreed on a subscription agreement and policy rights agreement, granting IFC certain communication rights with the company’s auditor within legal boundaries.
According to Artemis Medicare Services, this move aims to enhance the company’s healthcare services and expand its presence in the Delhi NCR region.
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By GlobalDataThe healthcare company currently operates 713 beds, including a 541-bed quaternary care, super-speciality hospital accredited by the National Accreditation Board of Hospitals and Healthcare Providers and the Joint Commission International.
It also manages five hospitals under the Artemis Lite and Daffodils brands and seven centres under the Artemis Cardiac Care brand in partnership with Philips.
The company’s growth strategy includes increasing bed capacity and introducing advanced speciality services to meet the rising healthcare demands in the region.
IFC’s investment is poised to support Artemis’s initiatives to improve healthcare accessibility.
The focus will be on expanding bed capacity, introducing new medical specialities, and setting up cardiac care centres, particularly in Tier II and III cities.
This partnership is expected to generate employment and promote professional development in the healthcare sector.
The completion of the latest transaction is contingent upon receiving approval from Artemis’s shareholders, in-principle consent from stock exchanges, as well as meeting customary closing conditions.
KPMG has served as the exclusive financial adviser while Khaitan & Co has provided legal counsel to Artemis in this deal.
