Shares of Fortis Healthcare surged by more than 4% on September 5, 2024, following the company’s announcement to raise around ₹1,500 crore in debt to fund an acquisition, according to ET Now. The move is expected to strengthen Fortis’s diagnostic business, which the company believes will enhance profitability and performance.
“The company will fund this acquisition through raising debt of around 1500 cr” says Dr. Ashutosh Raghuvanshi of Fortis Healthcare to ET Now publication.
Fortis Healthcare plans to focus on rebuilding and recalibrating its business growth, anticipating improved performance going forward. The company noted that pricing pressure on wellness services is decreasing, and deep discounts are becoming unsustainable.
The firm expects good growth in average revenue per occupied bed (ARPOB) and projects margins of 21 to 22% for FY25. Additionally, Fortis plans to operationalize 350 new beds within the year.
As of 12:25 PM, Fortis Healthcare shares were trading 3.96% higher at ₹565.00.