Fortis Healthcare soars as Singh bros resign from board

The stock of Fortis Healthcare was trading higher by around 20 per cent in the early morning session on Friday.

Malvinder Singh, Executive Chairman and Dr. Shivinder Singh, Non-Executive Vice Chairman resigned from the directorships of the company, the company said in a regulatory filing. The company's board has decided to meet on February 13, to discuss the issue.

The Delhi High Court, on January 31, allowed Daiichi Sankyo to collect an arbitration award for Rs. 3,500-crore from Singh brothers, the former promoters of Ranbaxy Laboratories. The Japanese drugmaker Daiichi alleged that Singh brothers concealed crucial information while selling Ranbaxy in 2008. Daiichi had to plead guilty in the US to charges of falsifying data and selling adulterated medicines. The drugmaker had to pay Rs. 3,500 crore as penalty.

Earlier, the Supreme Court of India had also barred the Singh brothers from selling any of their assets in Fortis Healthcare.

The stock reacted positively to the news and at 9:40 hours, the stock of Fortis Healthcare was trading at Rs. 150.80 per share, up by Rs. 24.70 or 19.59 per cent on Friday.