At the end of the June quarter, promoter entities held 31.17% stake in Fortis Healthcare while public shareholders held 69%. Promoter group and IHH healthcare arm Northern TK Venture Pte Ltd held 31.17% stake in Fortis Healthcare at the end of the first quarter, as per data available on the exchanges.
Nomura
Brokerage firm Nomura said IIH has reiterated its plan to increase its stake in Fortis from 31% to 51% over the next three to five years. This could be done via fresh capital infusion or creeping acquisitions of less than 5% annually.
Any increase in stake needs to be return on equity-accretive by the second or third year, Nomura said.
Morgan Stanley
The brokerage said the Fortis-Gleneagles integration is progressing well, with systems and operations largely integrated. Gleneagles Hospitals is an IHH Healthcare-owned international healthcare brand.
IHH has reiterated the three to five year ambition to reach a 51% effective stake in the company, it said.
The increase would be through a mix of primary capital and opportunistic secondary market purchases, depending on Fortis’ actual capital requirements and availability of shares.
Any incremental stake increase must be return on equity-accretive within two to three years, Morgan Stanley added.
Stock reaction
Shares of Fortis Healthcare gained 2.9% to hit an intraday high of ₹941.9 apiece on Friday. The stock was up 1.6% at ₹930 apiece at 2.15 pm. It has declined 1.6% in the past month but is up 3.3% this year, so far.
