Fortis Healthcare turns volatile after promoters Singh brothers resignation

The stock opened 2% lower at Rs 123 on BSE, bouncing back 28% to hit high of Rs 157 in intra-day trade, trading at Rs 147 at 09:48 AM.

The stock of Fortis Healthcare has turned volatile a day after the promoters Malvinder Mohan Singh and Shivinder Mohan Singh announced late on Thursday their decision to resign from the board of the hospital chain.

The stock opened 2% lower at Rs 123 on BSE, bouncing back 28% to hit high of Rs 157 in intra-day trade so far on back of heavy volumes.

At 09:48 AM; it was trading 16.5% higher at Rs 147, as against 1.4% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 23.58 million equity shares representing 4.5% of total equity of Fortis Healthcare changed hands on BSE and NSE.

The stock hit multiyear low of Rs 107 on BSE on Tuesday, February 6 in intra-day trade. The market value of the company more than halved from its 52-week high of Rs 231 hit on May 3, 2017 in intra-day deal.

“This is to inform you that Mr. Malvinder Mohan Singh, Executive Chairman and Dr. Shivinder Mohan Singh, Non-Executive Vice Chairman has tendered their resignation from the directorships of the Company,” Fortis Healthcare said in a regulatory filing.

The resignation letter was circulated to the Board and the Board has decided to discuss the matter in detail at its meeting scheduled on February 13, 2018, it added.

The resignation follows a recent Delhi High Court decision to enforce a Rs 35 billion arbitration award, given by a Singapore tribunal and won by Daiichi Sankyo in 2016, the Business Standard report suggested. CLICK HERE TO READ FULL REPORT.