Shares of Fortis Healthcare jumped as much as 25% in the early trades on Friday after the promoters Malvinder Mohan Singh and Shivinder Mohan Singh resigned as directors from the company’s board. The Delhi High Court upheld its order the Rs 3,500 crore arbitral award in favour of Daiichi Sankyo. The stock of Fortis Healthcare rose 24.54% to the day’s high of Rs 157.05 on BSE after opening marginally down at Rs 123.1 on Friday. A heavy trading volume has been observed in the shares of Fortis Healthcare, as at 10:25 am, more than 3.3 crore shares exchanged hands on both NSE and BSE with about 2.9 crore shares on NSE alone. Following a sharp spike in shares of Fortis Healthcare, the company added Rs 1,606.88 crore in the market capitalisation to Rs 8,153.83 crore at day’s high price of Rs 157.05.
The Singh brothers have jointly tendered their resignation to the Board of Fortis Healthcare, which will discuss it in the meeting on 13 February the company said in an exchange filing. “Malvinder Mohan Singh, Executive Chairman and Shivinder Mohan Singh, Non-Executive Vice Chairman have tendered their resignation from the directorships of the company,” Fortis Healthcare said. The resignation is intended to free the organisation from any encumbrances that may be linked to the promoters, the letter said. “In light of the recent High Court judgement upholding the plea of Daiichi Sankyo to enforce the arbitration award, we believe this is in the interest of propriety and good governance,” it said.
The Delhi High Court had on 31 January upheld an international arbitral award of Rs 3,500 crore passed in favour of Japanese pharmaceutical company Daiichi Sankyo, which has alleged that the former promoters of India’s Ranbaxy Laboratories had concealed information about proceedings against them by American food and drug department. “The members of the board are also requested to look into all inter-group transactions and distance the promoter group from Fortis Healthcare Ltd in a manner that enables continuity of the operations of the organisation and deliver on its
mission of enriching and saving lives,” the Singh brothers wrote in the letter.
Meanwhile today, Indian stock markets plummeted heavily with Sensex slumping 563 points and Nifty slipping below 10,400-level for the in 2018 as global sell-off extended following a landslide plunge in US stock markets on Thursday. The S&P BSE Sensex crumbled as much as 563.51 points to hit a nearly to a one-and-half-month low of 33,849.65 and NSE Nifty slipped below 10,400-mark for the first time in 2018 diving 178.65 to the current year’s low of 10,398.2. Earlier on Thursday, Us equities witnessed a massive sell-off due to which the key equity index Dow Jones Industrial Average dived more than 4%. Meanwhile, a sharp decline in heavyweight shares of companies such as ICICI Bank, HDFC, HDFC Bank, ITC, Infosys, Reliance Industries, L&T and TCS contributed heavily to the index losses.