Fortis Healthcare bounces back

One way or the other, Fortis Healthcare somehow manages to stay in the news. For the past couple of days, the buzz was about the company selling stake to Malaysian company, IHH and then IHH pulled out which pummeled the stock price.

Today the news is that its hugely well known and popular diagnostic arm, SRL Diagnostics, as a part of its demerger plan from parent, is looking at getting itself listed. It is reportedly looking at an IPO in August.

It was last August that the Singh brothers, spun off SRL from Fortis to merge into its existing listed subsidiary Fortis Malar, which was renamed SRL Diagnostics. 

Post listing, the Singh brothers will own 30% stake while a clutch of PE funds will own another 30%. This listing, many brokerage houses believe will unlock a lot of value for the shareholders of Fortis who have been waiting for some new trigger for quite some time now.

The stock price rose over 4% to Rs.171.85 today and is now trading at Rs.168 levels. Its 52-week high is at Rs.230.90 and low at Rs.142.60.