Fortis spurts on stake sale news

Fortis Healthcare is amongst the top gainers on the BSE currently. From its close of Rs.156.55 yesterday, it has gone up to an intra day high of Rs.164.95 and continues to hover around the same levels.

The stock is up on unconfirmed news that PE funds, Baring Asia, Capital International and Bain Capital are in advanced talks to buy a controlling stake in SRL Diagnostics, a subsidiary of Fortis. This news of stake sale has been going around for a year now. Last year too, the news had surfaced that it was looking at selling stake, mainly to help some of the existing PE funds to get an exit route after the IPO plans were shelved.

Currently, IFC, NYLIM Jacob Ballas and Avigo Capital Partners together own 34% and Fortis holds 57% stake.

The stake sale is expected to fetch around Rs.4000-4500 crore.