Shares of Fortis Healthcare Ltd will be in focus in Tuesday’s trade after the hospital chain on Friday said it has finalised agreements for the sale of Fortis Malar Hospital in Chennai to MGM Healthcare Private Limited. The sale consideration is approximately Rs 128 crore.
Fortis Healthcare shares ended flat at Rs 366.30 on Friday against the previous close of Rs 365.15 on BSE.
Market cap of Fortis Healthcare stood at Rs 27,654 crore on BSE. Total 0.28 lakh shares of the firm changed hands amounting to a turnover of Rs 1.02 crore on BSE.
In terms of technicals, the relative strength index (RSI) of the stock stands at 63.4, signaling the stock is neither oversold nor overbought. Fortis Healthcare has a one-year beta of 0.3, indicating very low volatility during the period. Fortis Healthcare shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.
The stock hit a 52 week high of Rs 376 on November 11, 2023 and a 52 week low of Rs 245.40 on March 24, 2023.
“The agreement is for a sale consideration of approx. INR 1,28,00,25,000 (Rupees One hundred and twenty eight crores and twenty five thousand) (subject to customary closing adjustments as agreed in definitive agreements)," Fortis Healthcare said in an exchange filing.
The agreement involves the sale of Fortis Malar Hospital's business operations, as well as the associated land and building assets located in Gandhi Nagar, Adyar, Chennai. This all-cash transaction is anticipated to be completed by the conclusion of January 2024, contingent upon specific conditions precedent and closing requirements outlined in the definitive agreements.
The successful execution of the deal is also dependent on obtaining approvals from shareholders of both Fortis Healthcare and Fortis Malar Hospitals Limited, said a joint statement.
It further stated that the divestment is a component of Fortis' continuous portfolio rationalization strategy, aiming to concentrate on strengthening its position in specific geographic clusters where it has a substantial presence.
“The proposed divestment of the Fortis Malar facility underpins our focus on optimizing the current portfolio of our hospital assets with a view to prioritize our growth and expansion in other key markets and re-allocate capital judiciously," said Dr. Ashutosh Raghuvanshi, Managing Director & CEO, Fortis Healthcare Limited in a statement.
Meanwhile, shares of Fortis Malar Hospital ended 2.54% lower at Rs 69.19 on Friday against the previous close of Rs 70.99 on BSE.
Market cap of Fortis Malar Hospital stood at Rs 129.67 crore on BSE. Total 0.17 lakh shares of the firm changed hands amounting to a turnover of Rs 12.26 lakh on BSE.
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