Moneycontrol
Last Updated : Feb 11, 2019 04:12 PM IST | Source: Moneycontrol.com

Apollo Hospitals falls 10% as pledge shares issue spooks D-St; management clarifies

Recent data suggest that pledged shares have gone up by 5 percent recently which were largely due to the unwinding of KKR instrument which was closed out in January, CNBC-TV18 said.

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Shares of Apollo Hospitals plunged 10.6 percent on the BSE on Monday as concerns over the rise in Pledged shares. Shares fell over 13 percent in intraday trade, the most since December 2011. Shareholders wealth in terms of market capitalisation fell by Rs 1860 crore on Monday.

Recent data suggest that pledged shares have gone up by 5 percent recently which were largely due to the unwinding of KKR instrument which was closed out in January, CNBC-TV18 said.

However, the management is confident on increasing liquidity in the next 6 months which will help reduce pledge. Speaking to CNBC-TV18, Suneeta Reddy, Joint MD of Apollo Hospital clarified that there is no issue of liquidity at the promoter level.

She expects liquidity infusion and reduction of the pledge in Q1FY2, and there was no selling of pledged shares taken place today. Pledge funds were used to invest in Apollo Munich, maintain shareholding in Apollo Hospitals.

Reddy further clarified that the management will reduce pledged shares by 50 percent in the next 6 months.
First Published on Feb 11, 2019 04:05 pm
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