Fortis Healthcare shares fell over 17% in intraday trade on Friday after the Supreme Court held former Ranbaxy promoters Malvinder Singh and Shivinder Singh guilty of contempt of court.
The Supreme Court said that the Singh brothers had violated an earlier order by the court to put on hold the sale of their controlling stakes in Fortis Group to Malaysian firm IHH Healthcare.
The apex court refused to lift a stay on IHH Healthcare open offer for Fortis. Malaysian operator IHH Healthcare had infused Rs 4,000 crore in Fortis and put an additional Rs 3,400 crore in an escrow account to initiate an open offer. On December 14, 2018, the court had ordered that status quo be maintained on sale of controlling stake in Fortis Healthcare Holding Pvt Limited to Malaysian firm.
Reacting to Supreme Court verdict, shares price of Fortis Healthcare fell as much as 17.36% and touched an intraday low of Rs 129 on BSE, against the last closing price of Rs 156.10. Volume-wise, shares amounting to 23.9 lakh and 372.20 lakh traded on the BSE and NSE counters.
In the early trade, Fortis Healthcare shares gained 3.14% and touched a new 52-week high of Rs 161 on BSE after the apex court passed a judgement in favour of one of its wholly-owned subsidiary Escort Heart Institute & Research Centre Limited (EHIRCL). The court quashed the proceedings for eviction of Fortis Healthcare Ltd's subsidiary Escort Heart Institute & Research Centre (EHIRCL) from its premises at Okhla in Delhi, the company said in a filing with exchanges.
In 2008, the Singh brothers, the former promoters of Ranbaxy, sold Indian drugmaker Ranbaxy to Daiichi Sankyo for Rs 10,000 crore. In 2013, Daiichi paid $500 as felony charges in the US for selling adulterated medicines, following which it filed an arbitration case against the Singh brothers and alleged that they hid information about US regulatory probes into the company.