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Sunday, April 15, 2007

HDFC Sec bullish on Fortis IPO


The Ranbaxy Labs promoter group company Fortis Healthcare Limited is entering the capital market with an Initial Public Offering opening tomorrow and the leading brokerage firms are bullish on the fortunes of the company in view of growth in the sector both spread in infrastructure and gradual increase in spending on healthcare.
Fortis Healthcare has fixed a price band of Rs 92 to Rs 110 against the pre-IPO placement at an average price of Rs 144 thus giving an opportunity to investors for a handsome appreciation in the share price.
FHL, which is positioned as a world-class integrated healthcare delivery system entailing the finest medical skills combined with compassionate patient care, is well positioned in the current scenario wherein the healthcare sector is riding on the growth of infrastructure, shifting demographics and the gradual spend on healthcare insurance amongst Indian population.
Analysts from HDFC Securities said in their report that "the tremendous scope in the healthcare industry is yet to trickle down to the micro level due to the peculiarities of the Indian market. It would be anybody's guess as to the speed with which this will happen going forward."
After clothes and food, big industrial players are perking up the retail health segment by providing round-the-clock healthcare, including counselling and out-patient services, they observed.
Fortis has a strong portfolio in specialties such as cardiac care, orthopaedics, neuro-sciences, renal care, oncology, gastroenterology, diabetology, pulmonology and mother and child care.