Fortis Healthcare slumped 11.16% to Rs 175.85 at 12:00 IST on BSE after reports suggested IHH Healthcare Berhad is not close to concluding any negotiations to buy controlling stake in the company.
Meanwhile, the S&P BSE Sensex was down 140.56 points, or 0.45%, to 31,150.18. The S&P BSE Mid-Cap index was down 219.34 points, or 1.49%, to 14,543.73.
High volumes were witnessed on the counter. On the BSE, 16.34 lakh shares were traded in the counter so far, compared with an average volume of 9.7 lakh shares in the past one quarter. The stock had hit a high of Rs 187.60 and a low of Rs 174.45 so far during the day.
The stock had hit a record high of Rs 230.90 on 3 May 2017. The stock had hit a 52-week low of Rs 142.60 on 9 November 2016.
The stock had underperformed the market over the past one month till 22 June 2017, rising 1.59% compared with Sensex's 2.35% gains. The scrip had also outperformed the market in past one quarter, gaining 13.7% as against Sensex's 7.28% rise. The scrip had also outperformed the market in past one year, gaining 23.1% as against Sensex's 16.91% rise.
The mid-cap company has an equity capital of Rs 518.46 crore. Face value per share is Rs 10.
Earlier reports had suggested that IHH Healthcare Bhd will be buying a controlling stake in Fortis Healthcare and SRL Logistics from Malvinder and Shivinder Mohan Singh, the promoters of the company.
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The combined deal value of Fortis Healthcare and SRL Diagnostics was seen at around Rs 19000 crore and the deal was expected to complete within a few weeks. However, IHH Healthcare reportedly said IHH is not, nor is it close to, concluding any negotiations or due diligence or transactions in India at this point in time.
IHH was wary of Daichhi Sankyo's ongoing Rs 3500 crore litigation against the Singh brothers and was not convinced that it would get clean and undisputed ownership of Fortis shares, report said.
The Japanese company has disputed the right of the Singh brothers to sell their shares in their group companies until their arbitration dispute is settled. A Singapore arbitration tribunal has ordered the brothers to pay Rs 3500 crore to Daichhi Sankyo, who have challenged this order in the Delhi High Court.
The arbitral award came after Daiichi alleged that the Singh brothers had concealed crucial information while selling Ranbaxy to it for $4.6 billion in 2008. The Singh brothers are contesting the award.
Fortis Healthcare Holding has 52.2% stake in the firm as per the shareholding pattern as on 31 March 2017.
The plan to sell their healthcare assets is part of the Singh brothers' strategy to divest control in all their key businesses through multiple transactions to raise funds to tide over the cash crunch at the group level.
Fortis Healthcare reported consolidated net loss of Rs 37.52 crore in Q4 March 2017 compared with net loss of Rs 87.6 crore in Q4 March 2016. Net sales rose 5% to Rs 1123.43 crore in Q4 March 2017 over Q4 March 2016.
Fortis Healthcare is a leading integrated healthcare delivery service provider in India.
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