YES Bank buys 17.31% stake in Fortis Healthcare

Team Udayavani, Mar 15, 2018, 10:36 AM IST

New Delhi: YES Bank has acquired 17.31% stake in Fortis Healthcare, following invocation of nearly nine crores pledged shares last month.

In a regulatory filing, Fortis Healthcare said, “YES Bank has acquired 8,97,81,906 equity shares having nominal value of Rs 10 per share of the company pursuant to invocation of pledge on the said equity shares subsequent to default by promoter group companies in the credit facility provided by the bank.”

The acquired shares amounted to 17.31% of the total diluted share capital of the company with a similar amount of voting rights, the filing added. The shares were acquired by YES Bank on February 16, consequent upon invocation of pledge on these shares, it added.

On February 15, the Supreme Court lifted its stay on sale of shares of Fortis Healthcare pledged with banks by the promoters Singh brothers (Malvinder Mohan Singh and Shivinder Mohan Singh) before August 31, allowing financial institutions, including Axis Bank and YES Bank, to sell the pledged shares.

Subsequently, the stake of promoter firm Fortis Healthcare Holdings along with promoters (Singh brothers) and other family entities have come down to 5.87% from 34.43% earlier.