Apollo Hospitals slapped notice on use of GDR issue proceeds

Apollo Hospitals Enterprise Ltd has announced that the Company has received a Show Cause notice from Directorate of Enforcement, wherein the Company has been asked to explain the end uses of GDR issue made by the Company during the year 2005. The Company has received the notice on May 20, 2009 and have 30 days time to reply.

The Company has used the proceeds for expansion of its hospital projects including investments in Bangalore & Kakinada primarily and are going into the merits of the case and will be acting as per legal advice. As far as the Company's understanding goes, the Company is not in contravention of any provision of law and the Company feel that the issue may have been a subject matter of interpretation, which the Company will be addressing in due course.

The stock closed the day at Rs.546.20, up by Rs.74.35 or 15.76%. The stock hit an intraday high of Rs.558 and low of Rs.445.

The total traded quantity was 61164 compared to 2 week average of 21586.

Source : Equity Bulls

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