Things are moving in positive direction for Fortis Healthcare: Rakesh Arora

CNBC-TV18 learns that Asia's largest private healthcare group IHH has terminated exclusive talks to buy a stake in Fortis Healthcare.

In an interview to CNBC-TV18, Rakesh Arora, Managing Partner of Go India Advisors discuss these and more stocks.

Delhi High Court (HC) has given Fortis a go ahead to sell the stake is a positive thing, he said. He expects to see interest from other bidders post this nod.

“Fortis management have more incentive now to look at various other bidders and up the price rather the IHH being able to push the price lower,” he added.

New bidder coming in would resolve the corporate governance issue, he further said.

Arora sees a re-rating of Fortis Health's stock post a potential deal.

“Things are moving in the positive direction,” he said.

Speaking about Aditya Birla Nuvo and Grasim Industries merger, he advised all shareholders to hold on to stocks be it AB Nuvo or Grasim because he believes there will be value unlocking in the near future. “Grasim shareholders would benefit once the demerger of financial services happen because there will be some unlocking of value,” he mentioned.

Equity value is zero for Bhushan Steel and lenders will have to take a big haircut, so investors should not look to buy Bhushan in any case, said Arora.