Fortis Healthcare says banks circumspect on credit lines post SC judgement

Leading hospital chain Fortis Healthcare Ltd on Wednesday said the banks have become more circumspect on credit lines after the Supreme Court refused to vacate its stay on IHH Healthcare Bhd's proposed open offer for the company in November.

However, the management said there is no liquidity constraint as of now in terms of working capital and salaries, "The company has adequate amount of liquidity, sufficient banking lines. and adequate flexibility in terms of repaying or renewing current debt that stands at around Rs 1,200 crore odd as of Q2."

Fortis Healthcare said it's being prudent when it comes to capex and investment as it awaits the outcome of the Supreme Court hearings.

In a BSE filing last year, the company said, "It has been advised that the open offer made by IHH Healthcare Berhad to the Fortis shareholders to acquire 26 percent stake at Rs 170 per share continues to remain in abeyance and would be adjudicated upon in conjunction with the hearing of the contempt petition."

IHH has deposited around Rs 3,350 crore in the bank, which is held in an escrow account as investigations are continuing by the Serious Fraud Investigation Office (SFIO) regarding the fund diversion allegations with regards to the Singh brothers.

According to the company, it is probably looking for divestment of non-core assets and likely to explore that option. However, Fortis doesn't have any plans to divest SRL Diagnostics as of now.