Fortis Malar Hospital shares surged 20 per cent to Rs 68.50, its maximum intraday limit on Bombay Stock Exchange after its parent company Fortis Healthcare announced a restructuring exercise.
Fortis Healthcare on Friday announced demerger of its diagnostic business SRL, which will be merged with Fortis Malar subsequently. Fortis Healthcare shares also gained as much as 3.5 per cent.
The existing hospital business of Fortis Malar Hospital will be transferred to Fortis Healthcare and Fortis Malar Hospitals will be renamed SRL post the merger of diagnostic business with it.
Shareholders of Fortis Healthcare will get 98 shares of SRL for every 100 shares held in the company.
Fortis Malar Hospital had come into existence in 2007 after Fortis Healthcare acquired stake in Chennai-based Malar Hospital.
The demerger of Fortis Healthcare’s diagnostic business will unlock value for shareholders, analysts said. Share offerings of diagnostic services providers Thyrocare Technologies and Dr. Lal PathLabs have witnessed huge interest from investors and their shares have outperformed the broader indices after listing.
As of 9.44 a.m., Fortis Malar Hospital shares were locked at upper circuit with 20 per cent gains at Rs 68.50 while Fortis healthcare shares were up 0.48 per cent at Rs 188.70. In comparison the broader Nifty was up 0.07 per cent.