NEW DELHI: Shares of Fortis Malar HospitalsBSE 19.96 % hit the roof, while that of parent Fortis HealthcareBSE -0.69 % jumped over 3 per cent in trade on Monday after the latter said its board had approved demerger of its diagnostic business and would soon merge the same with Fortis Malar Hospitals through a composite scheme of arrangement and amalgamation.
Following the development, shares of Fortis Malar Hospitals hit an upper circuit of 20 per cent to Rs 68.50 on BSE. Fortis Healthcare jumped 3.75 per cent to hit a high of Rs 194.40.
After the restructuring, Fortis Malar Hospitals will no longer be owned by Fortis Healthcare, as a 58.1 per cent stake in Fortis Malar will be with the public and Fortis Healthcare through its wholly-owned subsidiary FHSL will only own 1.3 per cent. The merged entity is proposed to be listed on the National Stock Exchange of India as SRL.
At present, Fortis Healthcare owns 56.4 per cent stake in SRL, while another 38.9 per cent stake is owned by private equity firms and financial institutions and the balance 5.3 per cent by the Shivinder and Malvinder Singh family.