Metropolis Healthcare gains after promoter cuts stake to reduce debt

Metropolis Healthcare rose 1.87% to Rs 1425 after the company said that a promoter has divested 6.03% stake in the company for Rs 422.58 crore to repay debt.

A member of the promoter group of Metropolis Healthcare divested 30,54,545 equity shares of the company, constituting 6.03% equity, through a bulk deal on BSE at Rs 1,383.44 per equity share on Wednesday (24 June).

Post this divestment, the promoter group holding in Metropolis Healthcare has reduced to 50.81% from 56.84% earlier.

The proceeds from this divestment are intended to be used for substantial repayment of the loan availed by Metz Advisory. The reduction of pledge of equity shares is in the overall interests of all the stakeholders, the company said in a statement.

Ameera Shah, promoter and managing director, Metropolis Healthcare said, "We have sold a small part of our holding, in line with our commitment to bring down debt and associated pledges at the promoter and promoter group level. The book building saw strong demand from institutions both domestic and international."

Meanwhile, Aditya Birla Sun Life Mutual Fund purchased 3,12,224 shares, or 0.62% equity, via bulk deal at Rs 1,382.10 on BSE on Wednesday. Aditya Birla Sun Life Equity Fund held 3.029% stake in the company as on 31 March 2020.

The Metropolis stock fell 3.69% to settle at Rs 1,398.85 on Wednesday. It fell 5.44% in the past three days from its recent closing high of Rs 1,479.25 on 19 June 2020.

Metropolis Healthcare is a diagnostics company with presence across 19 states in the country. The company's network as of 31 March 2020 consists of 124 laboratories and 2,731 patient service centers.

The diagnostics chain operator reported 55.1% decline in consolidated net profit to Rs 15.49 crore on 2.5% rise in net sales to Rs 206.97 crore in Q4 March 2020 over Q4 March 2019. EBIDTA margin stood at 25% as on 31 March 2020 as compared to 28.6% as on 31 March 2019.

Powered by Capital Market - Live News