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Apollo Hospitals surges 5% after promoter announces stake reduction

The aim of the stake sale is to reduce the promoters' pledged shares in the company.

SI Reporter  |  New Delhi 

Mumbai Police's Economic Offences Wing fresh notices to 300 NSEL brokers

Shares of gained over 5 per cent to Rs 1,574.95 apiece on the BSE in the opening deals on Thursday after the promoter group family of the company said it will be issuing five million shares through secondary placement to raise around $101 million (Rs 720 crore).

However, minutes later, the stock pared most of its gains and was trading around half a per cent higher at Rs 1,504.10. In comparison, the S&P BSE Sensex was trading at 37,396.40 levels, up 126 points or 0.34 per cent.

The aim of the stake sale is to reduce the promoters' pledged shares in the company. The deal, for which Citi Group is acting as placement agent and building the book (the term for getting enough investors to buy into a new share issue), is expected to happen in a day or two. READ MORE

A combination of foreign and domestic institutional investors are expected to participate, said sources. The floor price is Rs 1,450 a share. Around 3.6 per cent of all shares in the company would be covered and Rs 750 crore is expected, going by the floor price, the report added citing market sources.

For the first quarter of the financial year 2019-20 (Q1FY20), had reported a 32 per cent growth in net profit on a standalone basis at Rs 79.32 crore during the quarter ended June 30, 2019, as compared to Rs 60.16 crore during the same period last year. The total income stood at Rs 2,233.94 crore during the quarter, as against Rs 1,912.44 crore in the corresponding quarter last year, a growth of 17 per cent.

On a consolidated basis, the net profit doubled to Rs 49.15 crore during the quarter as compared to Rs 23.34 crore during the corresponding quarter of the last fiscal. Total income stood at Rs 2,581.75 crore during the quarter as compared to Rs 2,215.11 crore during the same quarter last year, a growth of 16.6 per cent.

First Published: Thu, September 12 2019. 09:32 IST
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