InvestorQ : Why did the shares of Apollo Hospitals shoot up so sharply on Monday, 25 January?
Chandralekha Desai made post

Why did the shares of Apollo Hospitals shoot up so sharply on Monday, 25 January?

Answer
image
NISHA Nayak answered.
1 month ago
Follow

Apollo Hospitals stock price was buoyant on Friday and actually jumped 4% in an otherwise tepid and highly subdued market. This boost to the stock price came after the company raised Rs.1170 crore from qualified institutional placement. The stock is now quoting at an all time high price level after the news broke out. In the last quarter, Apollo outperformed the market by surging 30% as compared to just 20% rise in the BSE Sensex.

Apollo Hospitals Enterprises runs one of the most profitable private sector hospital chains in India and has been a pioneer in the field in India. It allotted 4.66 million equity shares to a total of 102 qualified institutional buyers or QIBs at a price of Rs.2511 per share. This was disclosed to the stock exchange by the company. This price of placement is slightly higher than the floor price which Apollo Hospitals had set at Rs.2508.58

Some of the big QIBs to get an allotment include the Universities Superannuation Scheme which took a big chunk of Rs.110 crore. The other investors include Aditya Birla Sun Life, HDFC Life Insurance, SBI Life Insurance, Societe Generale, Fidelity Funds and HSBC Global Investments. Most of these QIBs took allotments of over Rs.30 crore each. Apollo plans to utilize the funds to acquire 50% stake in a JV and to explore inorganic growth opportunities.

1 Views