Fortis Healthcare’s share price zoomed as much as 2.52 per cent to hit its 52-week high at Rs 565.65 per share on the BSE in Monday’s intraday deals.
Fortis Healthcare’s stock price today surged after the healthcare company said that it will buy the entire 31.52 per cent stake held by private equity investors in the material wholly owned subsidiary, Agilus Diagnostics formerly known as SRL Diagnostics. The company will fund this acquisition via the issuance of NCDs, it said.
Presently, Fortis Healthcare holds a 57.68 per cent stake in Agilus Diagnostics, with the remaining shares held by International Finance Corporation (7.61 per cent), NYLIM Jacob Ballas India Fund III LLC (15.86 per cent), and Resurgence PE Investments Limited (8.05 per cent).
These investors have exercised their ‘Put Option Right’, requiring the company to purchase their shares at fair market value according to the shareholders’ agreement, the healthcare provider said in an exchange filing.
To finance the acquisition, Fortis will issue listed, senior, secured Non-Convertible Debentures (NCDs) to eligible investors, including foreign portfolio investors.
Fortis Healthcare, a part of IHH Healthcare, is a healthcare services provider operating 28 health facilities, more than 4,500 beds (including operations and maintenance facilities), and over 400 diagnostics centres, including joint ventures. Fortis has a presence in India, the United Arab Emirates (UAE), Nepal, and Sri Lanka.
Revenue from operations also rose by 12.2 per cent year-on-year to Rs 1,859 crore, driven by growth in both the hospital and diagnostic segments.
However, the diagnostic business saw a modest 2 per cent year-on-year revenue growth, totaling Rs 309 crore.
The company has a total market capitalisation of Rs 41,560.45 crore. Its shares are trading at a price to earnings multiple of 195.18 times with an earning per share of Rs 2.83 per share.
At 11:30 AM; the share price of the company pared all their gains, trading 0.13 per cent lower at Rs 551. By comparison, the BSE Sensex was trading 0.34 per cent higher at 82,647 levels.
First Published: Sep 02 2024 | 11:51 AM IST
