This entity, Fortis Healthcare International, is owned by RHC Financial Services (Mauritius), a company that in turn is owned by the promoters of Fortis Healthcare India.
In its filing on the Bombay Stock Exchange, the company said: "The Board has also decided, subject to necessary approvals, to change the name of Fortis Healthcare India to Fortis Healthcare Ltd ('Fortis Healthcare')."
Some analysts' were of the view that if investors owned the stock then they should remain invested in it or fresh positions should be taken if the stock dips further.
On the other hand the reaction of the market was more on the lines of suspicious. Since both the companies are owned by the same promoters, an all cash deal does make the entire thing a little questionable, even though the company has stated its intent to hire a third party to conduct the valuation.
"The valuation will be advised by an independent valuation agency,to be appointed by a committee of Independent Directors for the purpose," said the company in its report.
Reports have stated that Fortis Healthcare India, promoted by the Singh brothers, will invest $1 billion over the next 3 years. This entity will will have total revenue of $1 billion.
The combined network will have over 74 hospitals with more than 12,000 beds, 580 primary care centers, 188 day care specialty centers, 190 diagnostic centers and a base of over 23,000 employees, making it amongst the largest integrated healthcare delivery networks in Asia Pacific.
VIEW: The technical charts show that the Stochastics have fallen by 75 and the direction of the stochastic oscillator is downard. The stock will have resisitance at Rs 142. If it falls below that then it will get its support at Rs 133. On the volume front also there is a decreasing trend.
We would recommend investors to stay away from the stock till it comes out with the valuation report on Fortis Healthcare International.
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