Fortis Healthcare under pressure after SC allows FIs to sell pledged shares

The stock slipped 20% to Rs 115 in noon deal trade, falling 24% from its intra-day high of Rs 151 on BSE on back of heavy volumes.

Fortis Healthcare has slipped 20% to Rs 115 in noon deal trade, falling 24% from its intra-day high on BSE on back of heavy volumes after the Supreme Court (SC) allowed financial institutions to sell pledged shares of the company. The stock hit an intra-day high of Rs 151 in early morning deal.

At 01:19 PM; Fortis Healthcare was trading 10% lower at Rs 129, as compared to 0.23% decline in the S&P BSE Sensex.

The trading volumes on the counter jumped more than four-fold with a combined 73.52 million equity shares representing 14% of total equity of Fortis Healthcare changed hands on BSE and NSE.

“The Hon'ble Supreme Court of India has clarified that the direction to maintain status quo shall not apply to shares of the Company held by Fortis Healthcare Holding Private Limited (FHHPL) as may have been encumbered on or before the interim orders dated August 11, 2017 and August, 31, 2017,” Fortis Healthcare said in a regulatory filing.

The apex court clarified an earlier order while hearing an appeal of Japanese firm Daiichi Sankyo Company Limited, which is seeking to enforce the Rs 35 billion arbitral award against Malvinder Singh and Shivinder Singh, the original promoters of pharma company Ranbaxy and Fortis.

A bench of Justices Ranjan Gogoi and R Banumathi clarified its earlier status quo order and said that the shares of Fortis Healthcare Limited encumbered by Fortis Healthcare Holding Pvt. Ltd with the financial institutions (FIs) can be sold, traded or transferred, the PTI report suggested. CLICK HERE TO READ FULL REPORT.