Apollo seeks members nod to hike borrowing limit to Rs 3,500 crore

New Delhi : Healthcare major Apollo Hospitals is seeking shareholders' nod to increase its borrowing limit to Rs 3,500 crore while it plans to raise Rs 500 crore via private placement to finance expansion.

As of now, Apollo Hospitals' borrowing limit is Rs 2,500 crore.

"Keeping in view the expansion plans and the consequent need for availing the financial assistance for funding the same, it is proposed to increase the borrowing limits of the company up to maximum amount of Rs 3,500 crore," Apollo Hospitals Enterprise said in a notice to shareholders, ahead of its upcoming AGM in August.

The company is also seeking nod for raising Rs 500 crore to augment long-term resources for financing "inter alia ongoing capital expenditure, expansion activities and for general corporate purposes" through issue of redeemable NCDs in one or more series/tranches on a private placement basis.

"This would be within the overall proposed enhanced borrowing limit (of Rs 3,500 crore)," it added.

A separate resolution seeks the members' nod for allowing the board for mortgaging the assets of the company in favour of financial institutions, banks and other lenders for securing their loans up to Rs 3,500 crore, it added.

Shares of Apollo Hospitals Enterprise today ended at Rs 1,375.85 on BSE, up 0.34 per cent from its previous close.