While Fortis Healthcare may be in the news for its recent merger deal with Manipal Hospitals, its intriguing to note that three ace investors including Rakesh Jhunjhunwala, Porinju Veliyath and Radhakrishnan Damani have a stake in the company.
While Fortis Healthcare may be in the news for its recent merger deal with Manipal Hospitals, its intriguing to note that three top investors including Rakesh Jhunjhunwala, Porinju Veliyath and Radhakrishnan Damani have a stake in the company. Notably, ace investor Rakesh Jhunjhunwala, who holds less than 1% stake in the company has raised questions on the sanctity of board approval for the deal with Manipal Hospitals, according to a report in The Economic Times. Interestingly, Fortis Healthcare’s board had approved the demerger of its hospitals business, to be acquired by Manipal Hospitals and TPG Capital for Rs 3,900 crore, which includes a 20% stake sale in SRL.
The shares have lost more than 14% since the announcement of the deal last week, and closed at Rs 128.3 on NSE this afternoon. The company had been in the news in February too, after promoters Malvinder and Shivinder Singh resigned. Renowned investor Porinju Veliyath said that corporate governance is the next major theme for investors to bet, and pointed out to the rally in shares of Fortis Healthcare after their resignation. Porinju had revealed in an interview to CNBC TV18 in February that he has picked up a stake in Fortis Healthcare.
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Apart from these two top investors, veteran investor Radhakrishnan Damani too picked up a stake in the company in February-18. Radhakishan Damani’s firm Derive Investments had picked up 26.5 lakh shares in Fortis Healthcare, translating to 0.5% stake in the company in February-18. The ongoing merger transaction has raised questions on implications for minority shareholders.
“We believe minority shareholders of Fortis Healthcare are not set to benefit from this current deal as the deal is tilted in favour of TPG and Manipal hospitals”, Edelweiss said in a recent research note. Fortis Healthcare Ltd shares have had a poor run at the bourses since January-18. The shares have lost nearly 20% in the period. In comparison, the BSE Healthcare index has corrected by 7% in 2018.