Fortis stock drops 4%, rebounds on Munjal's comments

NEW DELHI: Fortis Healthcare quickly stemmed losses after falling 4 per cent on Friday morning following assurances from Sunil Kant Munjal of Hero Enterprise that the deal to buy out Fortis will benefit all stakeholders.

Fortis board on Thursday okayed the buyout offer made jointly by Sunil Kant Munjal of Hero Enterprise and the Burman family. TPG-backed Manipal Hospitals, IHH Healthcare and Radiant Life Care-KKR were others in the race.

The stock tumbled 3.90 per cent to touch a low of Rs 146.50 today morning. It was believed that the IHH offer was the highest in value terms and it was payable upfront in cash without any further due diligence.


Munjal said both Hero and the Burmans have extensive experience in healthcare while noting that it's too early to share future plans for Fortis, ET Now reported.

“The board, post having the detailed discussions on the pros and cons of each offer, decided by majority, to recommend the offer of Hero Enterprise Investment Office-Burman Family Office... to the shareholders for approval,” Fortis stated in a filing.

The decision was made late Thursday night following a marathon meeting during which the board considered the recommendations of an advisory committee it had set up last month to evaluate binding proposals.