Fortis Healthcare share price tumbles over 19% – what led to this free fall?

Fortis Healthcare share price witnessed a free fall during Thursday’s trading session as the scrip fell up to 19 per cent to Rs 250.35 and 255.75 per share levels on the NSE and BSE, respectively. The stock price crashed after the Supreme Court's order on Japanese drugmaker Daiichi Sankyo’s plea challenging the Fortis-IHH deal.

According to Zee Business channel report, the apex court disposed off Daiichi's plea, and ordered a forensic audit on transactions, while refusing to lift the ban on IHH's open offer. 

The apex court also pronounced a jail term of 6 months for Singh Brothers and remanded the issue of the Fortis-IHH deal to Delhi High Court. Delhi HC will now take a decision on Fortis's open offer, the Zee Business report further said.  

It should be noted that Daiichi had challenged the Fortis-IHH deal to recover Rs 3,600 crore from former promoters Singh Brothers. IHH Group had acquired 31 per cent in Fortis in August 2018 for $1.1 billion, triggering an open offer for another 26 per cent.  

In its plea, Daiichi has argued in Supreme Court that Singh Brothers had pledged 1.7 million shares of Fortis Healthcare in violation of SC orders. The apex court in December 2018 stayed IHH open offer for Fortis. 

In a regulatory filing on Thursday, Fortis said, “We are seeking legal advice to decide our future course of action and remain committed to our core purpose of patient care and will continue to focus on our strategic and operational objectives to further strengthen and expand our healthcare network.”