Shares of healthcare major Fortis Healthcare Ltd plunged in trade on Friday morning, after Supreme Court put its sale on hold. Fortis Healthcare share price plunged by more than 14% to Rs 130.20.
Shares of healthcare major Fortis Healthcare Ltd plunged in trade on Friday morning, after Supreme Court put its sale on hold. Fortis Healthcare share price plunged by more than 14% to Rs 130.20. The development will come as a big negative for Fortis shareholders, as it had earlier been sold off to IHH, in what was seen as a good deal for them. “It is very unfortunate, as Singh brothers hold only a part of the firm, and if anything, they should be penalised. Thier share should be conficated and nothing should go from the sale proceeds to them. To stop the sale at this stage, when the open offer has just started, and IHH has nearly taken control in unfortunate, “Shriram Subramanian from Ingovern told the channel.
Even as Fortis continues to reel under liquidity pressures, the move will further add to concerns for the firm, as IHH will now be wary to infuse funds further. Bankers will also be wary to provide funds, given the regulatory risk, Subramanian added. “The Singh brothers had done too much mischief in trying to short-change Daichii, and the court has rightly taken a harsh decision,” Sandeep Parekh of Finsec Law Advisors told CNBC Tv18. The apex court has issued notice to Singh Brothers. Earlier, Daiichi had moved Supreme Court in a contempt plea against Singh Brothers, CNBC TV18 reported citing agencies.