Shares of Fortis Malar Hospital soared 20% to reach a record intraday limit of Rs 68.50 while that of Fortis Healthcare jumped by 3.5% on Monday morning, reported PTI. According to analysts, the surge was because of the possible restructuring of the parent company Fortis Healthcare.
On Friday, Fortis Healthcare had announced it will demerge its diagnostic business, SRL, and merge it with Fortis Malar. According to Livemint, Fortis Malar will first sell its hospital business to Fortis Healthcare for Rs 43 crore. Next, it will merge SRL with itself and will take the name of the diagnostic company.
Shareholders of Fortis Healthcare will get 98 shares of SRL for every 100 shares held in the company. With this, Fortis Healthcare shareholders will own shares both in the hospital's business and in Fortis Malar. Analysts said the demerger is likely to bring in more value for shareholders.