The board of directors of Fortis Healthcare Limited will meet on July 13 to evaluate bids submitted for raising funds, a statement filed by the company to the stock exchanges states.
The board will meet to consider and if thought fit approve raising funds through issue of securities on a preferential allotment basis in accordance of the Companies Act, 2013, Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and such other acts, rules and regulations as may be applicable.
Also, the trading window is closed until further notice, the statement says.
In May earlier, IHH had offered to buy stake worth Rs 40 billion at Rs 175 per share in two stages. While the initial deadline for submitting of bids was June 14 it was deferred to June 28 and later again to July 3. Meanwhile a consortium of Manipal Health Enterprises Private Limited and TPG Capital also submitted their bid but further details were not revealed. On May 14, Manipal Healthcare had offered to buy stake in Fortis worth Rs 21 billion.
The Burman Family Office and Hero Enterprise Investment office and Radiant Life Care and KKR were two other groups that had bid earlier, but later backed out by not submitting their revised bids on July 3.
The Burman Family Office and Hero Enterprise Investment office's earlier Rs 18 billion offer was selected by earlier board, but later ran into trouble on counts of an internal investigation being instituted by Luthra and Luthra law office regarding the appointment of board of directors as well as alleged misappropriation of company funds through rollover of inter-corporate deposits.
The Burman Family Office and Hero Enterprise Investment office and Radiant Life Care and KKR, reportedly backed out after unfavorable reports in the internal investigation including suspicious lending of Rs 494 crore worth inter-corporate deposits (ICDs) by the previous board members of the Fortis group and promoters – Shivinder and Malvinder Singh.