Fortis Healthcare shares slip post Supreme Court verdict

The Supreme Court on Friday held former Ranbaxy promoters Malvinder and Shivinder Singh guilty of contempt of court for violating its order asking them not to divest their shares in Fortis Healthcare.

Shares of Fortis Healthcare turned volatile, falling 20 per cent in the intra-day trade from its early morning high on the BSE on Friday after the Supreme Court held former Ranbaxy promoters Malvinder Singh and Shivinder Singh guilty of contempt of court for violating its order asking them not to divest their shares in Fortis Healthcare.

Post the verdict, shares of Fortis Healthcare tumbled 20 per cent to Rs 129, from its intra-day high level on the back of heavy volumes. The stock of healthcare facilities provider hit a 52-week high of Rs 161 after the company said the Hon'ble Supreme court of India on Thursday passed a judgement in favour of one of the wholly-owned subsidiaries of the Company viz. Escort Heart Institute & Research Centre Limited (EHIRCL).

At 12:56 pm, the stock recovered some of its lost ground and was trading 7 per cent lower at Rs 145 on the BSE. The trading volumes on the counter more than doubled with a combined 40 million shares, representing 5 per cent of total equity of Fortis Healthcare, changed hands on the BSE and NSE.

According to a PTI report, a bench comprising Chief Justice Ranjan Gogoi and Justice Deepak Gupta held the former Ranbaxy promoters guilty of contempt of court and said they had violated its earlier order by which the sale of their controlling stakes in Fortis Group to Malayasian firm IHH Healthcare was put on hold. CLICK HERE TO READ FULL REPORT