How to accumulate more shares of SRL Limited?

Dear friends,

Upon reading the article and news,as copy and pasted below (from Moneycontrole), my question is that if want my holding in srl diagnostic business, which share i should buy now, Fortis Heathcare Or Fortis Malar

It may seem very simple to experts and others but for a newbie like me i am confused, kindly through some lite on my confusion…
This is my first post in this valued group may sound silly but as a learner Hope to get few answers, thanks in advance…

Fortis Healthcare said its board has approved demerger of its diagnostics business into another group firm Fortis Malar Hospitals, a move aimed at ensuring independent growth of hospital as well as diagnostics business verticals. Company’s board approved a proposal to demerge its diagnostics business, including that housed in its subsidiary SRL Ltd into another majority-owned subsidiary, Fortis Malar Hospitals pursuant to a composite scheme of arrangement and amalgamation, Fortis Healthcare said in a regulatory filing.

As part of the process, Fortis Malar will sell its hospital business to Fortis Healthcare by way of a slump sale for a lump sum cash consideration of Rs 43 crore. “Upon the composite scheme becoming effective, and subject to receipt of requisite regulatory and statutory approvals, the diagnostics business of Fortis Healthcare, including that housed in SRL would be vested in Fortis Malar,” it said. The name of Fortis Malar will subsequently be changed to SRL, the company which is proposed to be listed on the

National Stock Exchange in addition to its current listing on the BSE, it added. Fortis Malar operates a hospital in Chennai. “We believe this will unlock immense value for all the shareholders. As a result of the new synergistic groupings, both the hospital and diagnostic businesses will benefit from greater clarity, a stronger focus and an independent growth trajectory,” Fortis Healthcare Executive Chairman Malvinder Singh said. Equally, this will enable the accelerated pursuit of their respective business goals while empowering them to reach their fullest potential, he added.

Upon the effectiveness of the composite scheme, Fortis Malar would issue and allot to the equity shareholders of Fortis Healthcare, as on record date, 0.98 fully paid up equity shares of Rs 10 each for every 1 equity share of Rs 10 each held by them in Fortis Healthcare. The equity shareholders of SRL will be issued and allotted 10.8 equity shares of Rs 10 each of Fortis Malar for every 1 equity share of Rs 10 each held by them in SRL as on record date.

Appointed date for the slump sale, demerger and merger under the composite scheme is January 1, 2017. “Our hospitals and diagnostics businesses continue to perform equally well. However, in the longer term, they have a growth path of their own requiring distinctive strategies,” Fortis Healthcare CEO Bhavdeep Singh said. The new arrangement resulting from the demerger will harness these unique capabilities and strengths, unlocking value by combining the flexibility with a focus on rapidly scaling up operations, he added.

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@JKR0 you have to buy Fortis Malar. SRL which is now in Fortis will move to Fortis Malar.

Having said this I would suggest do your homework before buying it and don’t just follow bandwagon of diagnostic business. Feel free to ask further question.

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Fortis shareholders will get almost one share of SRL for every share held . It makes better sense and cheaper to buy fortis now if you are serious about getting Exposure to SRL instead of chasing Malar after its hitting upper circuits.

You can dispose off fortis shares post demerger if you don’t want to hold on to hospital business.

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@atulgupta80 thanks alot dear…i am new in investing n learning…definitely i will try do some homework before investment…as far as diagnostic chain is concern…i as a medico know it has good reputation among docs who prescribe the tests…n one of the biggest organise player in field…n they r in pathology…as well as in radiology doing well…although financial part i hv to do work n i m not very good at it…if any other suggestion pls do favour me…thanks once again…

@morph…thanks for reply… After reading both reply i feel…i can buy either one…fortis malar will be directly converted in srl and was cheaper but ratio i m not sure…if i buy fortis healthcare i will be having both f. Helthcare n srl…ratio 100:98…later i can sell…hope i m right…if not pls correct me…thanks


Good that you posted your intention in this forum. If I were you, I would not touch Fortis Healthcare or Fortis Malar at this point in time despite ace investor Rakesh Jhunjhunwala has a stake in Fortis Healthcare. Mind you, Rakesh Jhunjhunwala probably would have bought the stock around Rs 90.

This is one of the most complex demergers one can imagine and definitely not in the interest of new shareholders that are going to jump on board. Please read this article to get an understanding of this demerger

In addition to the above also download this link and read this document, particularly, the block diagram explaining the demerger

Author Ravi Ananthanarayan in the above article has done good analysis. The better option would be to wait till SRL diagnostics gets listed and then see if valuations are reasonable before you buy.


@ravjan, thanks for inputs. I also think i should keep watch n study the development, before investing. thanks.

Fortis healthcare Value will unlock from here, comparing to peers it is very cheap stock.


If these promoters took Daiichi Sankyo for such a big ride - Ranbaxy, I am not sure about retail investors.

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Can the HC block sale of stake?

No matter how bad the news comes out for Fortis Healthcare, the stock price just doesn’t seem to correct further below 140/-
Last week the stock did fell below 140 towards 125/- but thanks to RJ, it managed to close again above 140/-

Fortis Health World is opening exclusive health store in our IT corporate campus in pune.
With following
A 10% discount on standard medicine
Up to 12% discount on select diagnostic equipment
A 5% flat discount on FMCG and other non-pharma products

Fortis to acquire entire portfolio of RHT at enterprise value of 4650crs

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Can anyone explain this in pure english ?

Seems like this is going forever.

Until the promoters settle with Daiichi and/or new investors come on board in Fortis this matter would keep on lingering.

Disc; invested in Fortis

Hiii jatin can u through some lite on fortis n it’s analysis n it’s longetivity

I cannot find the Q2 Fy18 result of Fortis HealthCare have they announced Q2 or not ?

East bridge capital raised their stake to 5+% now…

But i don’t see de-merger happening in near future now, Case seems to be stuck. Unless promoter do something about the Daiichi nothing gonna happen.

Is it a good time to accumulate Fortis Healthcare? The promoter (chor) now owns only 2% of the company, the company is generating profits, it has SRL and few others under its name.

Who are major shareholders? Can you please share the details?