Fortis Healthcare Ltd shares cracked as much as 17.4% in intra-day trade on Friday, i.e. 15 November, after the Supreme Court refused to lift its stay on completion of the takeover of the hospital chain by Malaysian operator IHH Healthcare.
The apex court also held former Ranbaxy promoters Malvinder Singh and Shivinder Singh guilty of contempt of court in a case filed by Japanese firm Daiichi Sankyo. The court said that Malvinder Singh and Shivinder Singh had violated an earlier order by the court to put on hold the sale of their controlling stakes in Fortis Group to Malaysian firm IHH Healthcare.
The top court, however, added that Malvinder and Shivinder Singh can get away from contempt by depositing Rs 1,175 crore each.
IHH Healthcare is currently Fortis’ largest shareholder with a 31% stake. Today’s judgement blocks IHH’s open offer to Fortis Healthcare shareholders that would have taken up its stake in the company to above 50%.
Fortis Healthcare shares closed down 8.8% at Rs 142.40 apiece, after hitting the day’s low of Rs 129. Interestingly, the stock has risen nearly 3% to hit its 52-week high of Rs 161 in morning trade after the Supreme Court passed a separate judgement in favour of one of its wholly-owned subsidiary Escort Heart Institute and Research Centre Ltd (EHIRCL).
The company told exchanges that the court has quashed the proceedings for eviction of EHIRCL from its premises in Delhi’s Okhla area. EHIRCL had moved the Delhi High Court after the Delhi Development Authority (DDA) in 2005 terminated the lease of the hospital.
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