Apollo Hospitals surges 5% after promoter announces stake reduction

The aim of the stake sale is to reduce the promoters' pledged shares in the company.

Shares of Apollo Hospitals gained over 5 per cent to Rs 1,574.95 apiece on the BSE in the opening deals on Thursday after the promoter group family of the company said it will be issuing five million shares through secondary placement to raise around $101 million (Rs 720 crore).

However, minutes later, the stock pared most of its gains and was trading around half a per cent higher at Rs 1,504.10. In comparison, the S&P BSE Sensex was trading at 37,396.40 levels, up 126 points or 0.34 per cent.

The aim of the stake sale is to reduce the promoters'