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Fortis Healthcare cracks 14% as SC puts sale to IHH on hold; recovers later

On a year-to-date (YTD) basis, the stock has slipped 5.5 per cent. At 11:35 am, the stock was trading at Rs 142.60, down 5.94 per cent.

SI Reporter  |  New Delhi 

A Fortis hospital building is pictured in New Delhi
A Fortis hospital building is pictured in New Delhi | Photo: Reuters

Shares of fell as much as 14 per cent to Rs 130 apiece on the National Stock Exchange (NSE) in the intra-day trade after the put company's sale to on hold.

Earlier, the Malaysian firm Healthcare Berhad made an open offer to acquire additional 26 per cent stake in which was scheduled to commence on December 18 and close on January 1, 2019, as per the regulatory filing. READ MORE HERE

Earlier on November 13, said it had issued 235.3 million equity shares through preferential allotment to Healthcare Berhad for around Rs 40 billion, a move that helps the Malaysian firm take 31.1 per cent stake in the company. The allotment was done at Rs 170 per share.

FORTIS HEALTHCARE: A TIMELINE OF EVENTS

On a year-to-date (YTD) basis, the stock has slipped 5.5 per cent (as of Thursday's close). At 11:35 am, the stock was trading at Rs 142.60, down 5.94 per cent.


With Malaysia’s healthcare giant IHH at the steering wheel, analysts had expected India’s second-largest hospital network, Fortis Healthcare (FHL), to soon be on the road to recovery.

TRACK THE STOCK PRICE MOVEMENT HERE

The occupancy rate was expected to stabilise at around 70 per cent that would have fuelled a mid-teens margin by the year-end. “Recovery is going to take three more quarters. Going into 2019-20, things will start looking good on a sustainable basis,” said Deepak Malik of Edelweiss Securities. READ MORE HERE

AK Prabhakar, Head of Research at IDBI Capital says it was a good deal for Fortis Healthcare which is grappling with so many issues. The order by the has again increased the uncertainty for the company. Investors are advised to stay away from it until IHH takes control of the management.

"An investor needs returns but the company has, of late, given only uncertainties and nightmares. Hence, there is no point in placing your bets now," Prabhakar said.

First Published: Fri, December 14 2018. 11:37 IST
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