Fortis shares end positive as firm moves to recover Rs 500 cr from Singh bros

Shares of Fortis Healthcare today defied the broader market sentiment and settled in the positive territory after the company said it had initiated legal action to recover Rs 500 crore from Singh brothers.

Moreover, the firm, which is embroiled in a takeover battle, also annulled September 2016 appointment of former executive chairman Malvinder Singh as 'Lead: Strategic Initiatives' and will seek to recover payments made to him in that role as well as any company asset in his possession.

Reacting to the developments, shares of the company opened at Rs 130.30, then touched a high of Rs 138 and finally settled for the day at Rs 135.75, up 0.93 per cent from its previous closing price.

Similar movement was seen on the NSE as well, where the stock opened at Rs 130.55, then touched a high of Rs 138.40 and finally closed for the day at Rs 135.40, higher by 0.59 per cent.

Fortis Healthcare today said it has initiated legal action to recover about Rs 500 crore of funds allegedly taken out of the company by its founders Malvinder and Shivinder Singh after an external investigation found "systemic lapses and override of controls" in loans being given to founders without board approval and enough collaterals.

Fortis, which had initiated an independent investigation through an external legal firm in February this year following allegations of siphoning of cash by the founding family, said the probe report has been submitted to the Sebi and Serious Fraud Investigation Office (SFIO) of the government.

Meanwhile, the company today reported widening of its consolidated net loss to Rs 914.32 crore for the fourth quarter ended March 2018, mainly on account of continuing business challenges.

The company had posted a net loss of Rs 37.52 crore for the corresponding period of the previous fiscal.