Emami rises on aiming to invest Rs 400 crore for healthcare acquisitions

Emami is currently trading at Rs 472.00, up by 3.05 points or 0.65% from its previous closing of Rs 468.95 on the BSE.

The scrip opened at Rs 476.95 and has touched a high and low of Rs 477.00 and Rs 468.00 respectively. So far 1775 shares were traded on the counter.

The BSE group 'A' stock of face value Rs 1 has touched a 52 week high of Rs 512.00 on 13-Oct-2010 and a 52 week low of Rs 313.20 on 10-Dec-2010.

Last one week high and low of the scrip stood at Rs 479.60 and Rs 440.05 respectively. The current market cap of the company is Rs 7187.31 crore.

The promoters holding in the company stood at 72.74% while Institutions and Non-Institutions held 17.12% and 10.15% respectively.

Emami is exploring for acquisitions in the healthcare space to expand the footprint of its hospitals business in the country. Emami and Shrachi Groups’ AMRI Hospital, is also in the process of investing Rs 400 crore to increase the number of beds it operates to around 1,500 this fiscal from 900 at present. Currently Emami’s presence is only in the eastern region now it is looking to acquire hospitals to expand in the rest of the country.

The company holds 66% stake in AMRI, Kolkata-based developer Shrachi has a 30% stake and the West Bengal government holds the remaining stake. It currently has three hospitals in West Bengal, while one more is coming up in Orissa. It is also looking to set up hospitals at Siliguri, Rajarhat, Ranchi, Patna and Raipur.

By next fiscal the firm expects to achieve a turnover of Rs 1,000 crore from the hospitals business, up from Rs 300 crore at present. There were reports earlier that the firm is looking to raise up to Rs 100 crore through private equity funding to expand its footprint.

Source:- http://money.livemint.com/News/Home/EQUITY/MOVERS-TODAY/141992.aspx

Thanks
Ankit Wani
Intern @ DENIP Consultants Pvt. Ltd.