Shares of Fortis Malar Hospitals surged almost 20 per cent today following Fortis Healthcare board's approving demerger of its diagnostics business into the group firm.
The scrip advanced by 19.96 per cent to settle at Rs 68.50 - its upper circuit limit - on BSE.
Shares of Fortis Healthcare however, fell by 3.12 per cent to close the day at Rs 181.95.
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Fortis Healthcare on Friday said its board has approved demerger of its diagnostics business into another group firm Fortis Malar Hospitals, a move aimed at ensuring independent growth of hospital as well as diagnostics business verticals.
Company's board approved a proposal to demerge its diagnostics business, including that housed in its subsidiary SRL Ltd into another majority-owned subsidiary, Fortis Malar Hospitals pursuant to a composite scheme of arrangement and amalgamation, Fortis Healthcare had said in a regulatory filing.
As part of the process, Fortis Malar will sell its hospital business to Fortis Healthcare by way of a slump sale for a lump sum cash consideration of Rs 43 crore.
"Upon the composite scheme becoming effective, and subject to receipt of requisite regulatory and statutory approvals, the diagnostics business of Fortis Healthcare, including that housed in SRL would be vested in Fortis Malar," it said.
The name of Fortis Malar will subsequently be changed to SRL, the company which is proposed to be listed on NSE in addition to its current listing on BSE, it added. Fortis Malar operates a hospital in Chennai.
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