Wockhardt scrip nose-dives 20 percent

April 1st, 2009 - 2:59 pm ICT by IANS  

Mumbai, April 1 (IANS) The stock of healthcare major Wockhardt fell 20 percent on the Bombay Stock Exchange following reports that the company would be referred to the corporate debt restructuring (CDR) mechanism for financial restructuring of its debts.
The scrip, which opened at Rs.70.10, much lower than its Rs.85.50 close Tuesday, slipped soon to Rs.68.45. At this level, the stock was down by a little over 20 percent.

The company, at its board meeting Tuesday decided chairman and managing director Habil Khorakiwala would step down with his son Murtaza H. Khorakiwala nominated as the next managing director.

The promoters hold about 74 percent equity stake in the company and have pledged about 79.21 percent of their shareholding with lenders.

The group is also reportedly in advanced discussion with Fortis Healthcare for divesting a 26 percent stake in subsidiary Wockhardt Hospitals for close to Rs.750 crore.

“In view of the adverse market conditions and debt burden, the board decided to make a reference to corporate debt restructuring cell through ICICI bank, for financial restructuring the debts of the company,” the company said in a regulatory statement Tuesday.

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