Religare Health Trust kicks off premarketing for $405 million IPO

Religare Health Trust, which will own assets managed by Indian hospital group Fortis, has started its premarketing in Singapore for an initial public offering (IPO) that could raise up to $405 million. The IPO, which will be structured as a business trust, is offering an indicative yield of 8.5-9% to investors. Further, the listing is planned in the third week of October.

The deal size will be between $400-500 million and the units offered will comprise about 70 per cent of the total. Citigroup, Nomura, Religare Capital Markets, Standard Chartered and CIMB are reportedly handling the deal. 

This is in a move to help the promoter of the trust - Indian hospitals group Fortis Healthcare to trim down its considerable debt level. Along with this, Religare Health Trust has a mandate to invest in medical and healthcare assets and services in Asia, Australasia and emerging markets.  Fortis is India's No 2 hospitals operator after Apollo Hospitals Enterprise. As of June-end, the company’s consolidated net debt stood at $1.12 billion.