New Delhi: City-based Goodwill Hospital and Research will invest around Rs 290 crore in two years to set up a hospital and a diagnostic centre at Faridabad and six polyclinics in various towns of Uttar Pradesh.

"We have acquired five acres of land at Faridabad and plan to put up a 700-bed super-speciality hospital. Investment to the tune of Rs 227 crore is required here," Goodwill Hospital Managing Director Namrata Chawla said.

The company has already secured Rs 150 crore loan from various lenders, including Punjab National Bank, and the rest would be funded through internal accruals.

Work on the proposed hospital has already started, she said, adding that it might take two years from now to make it fully operational.

The company would need Rs 62 crore to put up the diagnostic centre at the Faridabad hospital premises, six polyclinics at Muzaffarnagar, Bulandsahar, Meerut, Saharanpur, Hapur and Moradabad and for part repayment.

Goodwill plans to raise the entire Rs 62 crore from the proceeds of an initial public offering for which it has already filed the draft red herring prospectus (DRHP) with market regulator Sebi.

Chawla said the IPO proceeds would also be used to fund the diagnostic centre costing around Rs 25 crore and for setting up of the proposed polyclinics for around Rs 33 crore. The remaining amount will be used for part repayment of the company’s debts.

The IPO is likely to hit the market by October this year, she said, adding that the current volatility in the market is unlikely to delay the issue as the size of the offer is small.

Goodwill has appointed SPA Merchant Bankers to manage the issue, the price of which would be decided through book-building route.

The company had reported a Rs 54 crore turnover in 2010-11. It has a 200-bedded super-speciality hospital at Noida.