Yes Bank Ltd on Tuesday acquired more than 17 percent stake in Fortis Healthcare Ltd post invocation of pledge on the equity shares subsequent to default by the promoters group companies.
Yes Bank Ltd on Tuesday acquired more than 17 percent stake in Fortis Healthcare Ltd post invocation of pledge on the equity shares subsequent to default by the promoters group companies. 89,781,906 equity shares were acquired i.e. 17.31 percent of the paid up share capital of Fortis Healthcare Ltd, having nominal value of Rs 10 per share, Yes Bank said in a regulatory filing to exchanges. The private lender said that the acquisition was pursuant to “invocation of pledge on the said equity shares subsequent to default by promoters group companies in the credit facility provided by the bank.”
The shares of Yes Bank Ltd were trading at Rs 316.90 up by 1.21 percent on BSE at the time of reporting. Fortis Healthcare Ltd shares were trading at Rs 158.45 up by 3.90 percent on BSE.
On 15 February, the Supreme Court issued an order that financial institutions holding pledged shares of Fortis Healthcare Ltd are free to sell them. Fortis Healthcare Holding owned 38.65 percent in Fortis Healthcare and 36.58 percent was pledged to financial institutions as of August 4, 2018. Yes Bank Ltd, Axis Bank Ltd., RBL Bank Ltd and ECL Finance Ltd. are the key lenders.
As a result,the stake of promoter firm Fortis Healthcare Holdings along with promoters namely Malvinder Singh and Shivinder Singh and other family entities have reduced to 5.87 percent from 34.43 percent they held earlier.
On December 31, 2017, Fortis Healthcare Holding owned 34.33 percent in Fortis Healthcare Ltd, according to regulatory filing to exchange.