Singh brothers may sell 26% stake in Fortis: Reports

The move comes after company demerges with SRL diagnostics

Fortis promoters Shivinder and Malvinder Singh are in talks with private equity firm TPG for a 26 % sale stake, The Economic Times newspaper reported Tuesday. The firm had in August renewed an enabling provision related to its board approval to raise upto Rs 5,000 crore. 

At the time of renewing the fund-raising enabling provision, the company had mentioned that it did not require funds immediately. Recently, the Fortis group also completed demerger with SRL diagnostics. Earlier there were reports that Singhs were also looking at selling a substantial stake in Religare Finvest for as much as Rs 6,000 crore, but nothing has come of those reports as yet. 

The company did not reply to Business Standard’s mail on the same. Business Standard could not independently verify the stake sale reports. The Fortis group posted a net profit of Rs 38.2 crore for the quarter ended September 30, 2016 as compared to Rs 61.2 crore for the quarter ended September 30, 2015. Total Income has increased from Rs 1161 crore for the quarter ended September 30, 2015 to Rs 1,234 crore for the quarter ended September 30, 2016.