Artemis Medicare to Raise INR 330 Cr Investment from International Finance Corporation

Artemis Medicare plans to use the funds to improve healthcare access and fuel growth.

Leading healthcare provider, Artemis Medicare plans to raise INR 330 Cr from the International Finance Corporation (IFC) through a preferential issue of unsecured compulsorily convertible debentures (CCDs).

During the company’s recent meeting, the board approved the issuance of up to 33,000 fully paid unsecured CCDs to the IFC on a private placement basis to raise the investment amount.

Further, the CCDs will be convertible into equity shares of the company at a conversion price of INR 174.03 per equity share within a period of up to 18 months from the date of allotment.

The regulatory filing by Artemis Medicare further elaborated that the total number of equity shares to be issued upon conversion of all CCDs shall not exceed 1,89,62,247 equity shares of the company.

Moreover, the board has also approved the execution of the subscription agreement (SA) and policy rights agreement (PRA) with IFC.

Reportedly, these agreements will provide IFC with certain communication rights with the company's auditor, subject to applicable laws and restrictions.

Where will the Investment be Utilized?

Artemis Medicare intends to utilize the funds raised through this preferential issue to enhance access to healthcare services and support its growth plans.

The investment from IFC is expected to facilitate the company's expansion in terms of bed capacity, introduction of newer medical treatment specialties, and establishment of cardiac care centers in Tier II and III cities.

The company aims to increase bed capacity, introduce advanced specialty services, and enhance patient care to address demand-supply gaps and strengthen its presence in the Delhi NCR region.

Leveraging both brownfield and greenfield opportunities, Artemis Medicare is poised to accelerate its growth and extend services to all segments of society in the coming years.

Leadership Repositioning

Additionally, the board has recommended the fixation of tenure of its chairman and non-executive director, Onkar Kanwar, for a period of five years, effective from May 3, 2024. This recommendation will be presented to the shareholders for their approval through a special resolution.

To formalize these decisions, Artemis Medicare is expected to call for an extraordinary general meeting on May 3, 2024, to seek shareholders' approval for the preferential issue, grant of special rights to IFC, and the tenure fixation of Onkar Kanwar.

KPMG served as the exclusive financial advisor, while Khaitan & Co acted as the legal advisor to Artemis Medicare throughout this strategic investment process.

In a similar investment-expansion development, US-based private equity firm General Atlantic recently acquired a majority stake in Ujala Cygnus, a prominent healthcare provider in Northern India, for an undisclosed amount. Ujala Cygnus runs a network of 21 hospitals in Tier-II and Tier-III cities.

In December, reports of General Atlantic picking a 70% stake in Ujala Cygnus for INR 1600 Cr, including that of existing investors, surfaced. Per the healthcare provider, with the backing of a global equity firm, it aims to expand its footprint and advance its vision of providing affordable healthcare services in Northern India.