Apollo Hospitals zooms 10% after clarity on share allotment

Apollo Hospitals Enterprises has surged 10% to Rs 526, recovering more than half of its 14% fall Thursday, after the company clarified on enquiries with regard to the recent allotment of 3.09 million equity shares of Rs 5/- each to Dr. Prathap C. Reddy, one of the promoters of the company, at a price of Rs 385.88 per share on December 10, 2011.

“The allotment of equity shares is on conversion of warrants issued to Dr. Prathap C Reddy on June 12, 2010 as per the market regulator SEBI formula at the then prevalent market price and obtaining requisite shareholder approval," the company said in a filing to the stock exchanges.

As many as 786,579 shares have changed hands on the counter so far, as against an average less than 835,000 shares that were traded daily in past two weeks on the NSE and BSE.