Indian hospital chain Fortis Healthcare (FOHE.BO) plans to raise up to $185 million ($255 million) through a preferential allotment of shares and a foreign currency convertible bonds issuance to fund acquisitions.

Fortis will raise about US$85 million by issuing 22.35 million shares at 170 rupees ($5.23) each on a preferential basis to the private equity and infrastructure arm of Singapore’s state investment  firm, GIC Special Investments Pte Ltd, the firm said on Monday.

Religare Capital Markets is the sole adviser and arranger to the issue.

Fortis also said it will raise up to US$100 million through foreign currency convertible bonds of five-year maturity.

The bonds, to be issued via joint bookrunners Religare Capital Markets and Royal Bank of Scotland (RBS.L), are convertible at 167 rupees a share and bear a yield-to-maturity of 5.54 % per annum.

Fortis plans to buy 23.9% of Singapore’s Parkway Holdings (PARM.SI) from US buyout firm TPG Capital in a US$685 million deal that will give the Indian hospital chain a foothold in Singapore and Malaysia and make it the biggest private hospital network in Asia.

The firm had said in March it planned to fund the deal through the 2 billion rupees cash remaining out of the rights issue made last year and fresh issue of equities and currency bonds.

Fortis shares closed 1.27% up at 167.25 rupees in a firm Mumbai market that gained 3.35% on Monday.