Fortis-Daichi Case: Supreme Court sentenced Singh Brothers to 6 months imprisonment IG News

  • Shares of Fortis Healthcare tumbled over 16 percent
  • 17 lakh shares of Fortis Healthcare were pledged
  • 3600 crore rupees to Daiichi

The Supreme Court on Thursday sentenced Singh Brothers to six months in the Fortis-Daiichi Sankyo case and also ordered the Executive Court to conduct a forensic audit to probe transactions between lenders and financial institutions in connection with IHH’s open offer for Fortis. Following this verdict of the Supreme Court, the share of Fortis Healthcare fell by more than 16 percent in the stock market.

17 lakh shares of Fortis Healthcare were pledged

After the verdict, the stock plunged 16.06 percent to a low of Rs. It was trading around 262. It may be noted that Malaysia’s IHH bought 31 percent controlling stake in Fortis. After that, the company had to bring a mandatory open offer to buy an additional 26 percent stake. The Malaysian company bought Fortis Healthcare in August 2018 for $1.1 billion. It bid for Fortis Healthcare under the supervision of an independent board.

Daiichi has to take Rs 3600 crore

However, after that Daiichi Sankyo filed an application due to which the Malaysian health company could not bring its open offer. Japanese drug company Daiichi challenged the deal between Fortis Healthcare and the Malaysian company in court. Daiichi claimed that it should get Rs 3,600 crore earlier as a result of winning the case against Singh Brothers in the Singapore court. Daiichi Sankyo had filed a petition against Singh Brothers and Indiabulls alleging that they had pledged 1.7 lakh shares of Fortis Healthcare despite the Supreme Court ban.

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