Two shares will be issued on rights basis for every five equity shares held and the shareholders will also be awarded with two detachable warrants, the company said on Monday in a communication to the stock market.

The company has priced the rights issue at Rs 110 per share, which includes Rs 10 for the face value and Rs 100 as the premium.

"We are in a significant growth trajectory and the rights issue will further strengthen the Company's balance sheet and enable us to aggressively expand the network. We are committed to providing quality healthcare to citizens across the country," said, Shivinder Mohan Singh, Managing Director, Fortis Healthcare Ltd.

Further, a Fortis official said that the proceeds will be used mainly to fund Greenfield projects, redemption of preference shares, repayment of short-term debt, upgrading existing units and for future investment opportunities etc.

The 2-for-5 rights share issue is most likely to open in the mid-September this year.