Fortis Healthcare Tumbles As Supreme Court Orders Forensic Audit Of IHH Deal
The Supreme Court's order comes on Daiichi Sankyo's petition challenging the $1.1 billion Fortis-IHH deal struck in 2018.
Shares of Fortis Healthcare lost nearly 15%, the worst in at least 10 years.
The Supreme Court has refused to lift the halt on IHH Healthcare's open offer for Fortis and ordered a forensic audit on the share sale. In its order on Daiichi's petition on Fortis sale to IHH, the apex court has asked the Delhi High Court to decide on the open offer.
The order comes on Japanese pharma firm Daiichi Sankyo's petition challenging the Fortis-IHH deal. Daiichi sought to recover Rs 3,600 crore arbitration award against Fortis' former promoters, Malvinder Singh and Shivinder Singh.
The Supreme Court had ordered six-month jail for the Singh brothers.
Malaysian firm IHH Healthcare had bought a 31% stake in Fortis in 2018 for $1.1 billion. Daichii Sankyo had objected the sale of pledged shares in Fortis as it claimed rights over the shares.
The stock's trading volume was more than 24.1 times the 30-day average. All the 11 analysts tracking Fortis maintain a 'buy', according to Bloomberg data. The 12-month consensus price target implies an upside of 19.5%.