Fortis Healthcare, Religare Enterprises down upto 8% on talk of fraud probe

Religare Enterprises locked in lower circuit of 5% at Rs 60, while Fortis Healthcare was trading 5% lower at Rs 139, after falling 8% to Rs 135 on the BSE in intra-day trade.

Fortis Healthcare and Religare Enterprises were down up to 8% on the BSE in intra-day trade after media report suggested that Fortis promoters Malvinder Singh and Shivinder Singh will soon receive summons from Serious Fraud Investigation Office (SFIO) in connection with alleged financial irregularities. CLICK HERE TO READ FULL REPORT

“We would like to submit that the company has not received any communication, written or otherwise, from any government authority with regard to such a purported investigation and as such we have no knowledge of any investigation against the company,” Fortis Healthcare clarified with respect to news appearing in www.timesofindia.com - February 19, 2018 titled "Fortis, Religare face serious fraud probe; Sebi orders inquiry"

Religare Enterprises is locked in lower circuit of 5% at Rs 60 on the BSE with no buyers were seen on the counter. Till 11:17 am; a combined 6.5 million shares changed hands on the counter and there were pending sell orders for 457,554 shares on the BSE and NSE, the exchanges data shows.

Religare Enterprises on Monday after market hours said that the Investment, Borrowing and Share Allotment Committee of the Company has approved raising of funds through issue of warrants through preferential issue by issuing up to 176 million warrants of Rs 52.20 each, exercisable into equal number of equity shares of Rs 10 each of the Company on a preferential basis amounting upto Rs 9.16 billion, subject to shareholders’ approval.

Fortis Healthcare was trading 5% lower at Rs 139, after falling 8% to Rs 135 on the BSE in intra-day trade. The stock hit high of Rs 152 in early morning deal. The trading volumes on the counter nearly doubled with a combined 53.46 million shares changed hands on both the exchanges so far.

On Monday, ace investor Radhakishan Damani's firm Derive Investments had bought 2.65 million equity shares of Fortis Healthcare Rs 144.5 per share through block deals, as per bulk deal data on the NSE. CLICK HERE FOR BULK DEALS DATA.

Meanwhile, Fortis Healthcare in disclosures made to the stock exchanges said that promoters holding in the company reduced to 8.85% from 34.33% earlier after lenders revoked 132.6 million or 25.58% equity of promoter group on February 15 and February 16.