Stock in Fortis Healthcare International gained as much as 7.5 per cent in early trading on Monday to hit its 52-week high of Rs 119.50 a share after the integrated healthcare delivery provider announced its decision to sell its majority stake in Dental Corporation Holding.

Fortis Healthcare on Sunday announced that it would sell its 64 per cent stake in Dental Corporation Holdings, Australia, to the UK-based health insurance & healthcare firm Bupa for A$270 million (nearly Rs 1,550 crore).

Bupa is the second-largest health insurer in Australia. This company spends nearly $450 million per annum in Australia and New Zealand to provide people with dental ailments healthcare insurance coverage.

The proceeds from the stake sale will be used to slash the company's debt pile of more than Rs 4,000 crore.

Speaking about the stake sale, Fortis Executive Chairman Malvinder Singh said, "The move is good for Fortis as it aligns the company with its current strategic priorities. This will help consolidate our presence as one of the fastest growing healthcare companies in the region."

The sale of Dental Corporation Holdings is going to be Fortis' second major fund-raising exercise in the last two months. In October, the company pocketed Rs 2,260 crore by listing a business trust, comprising of some of its real estate assets on the Singapore Stock Exchange.

The transaction is expected to be completed by the end of March next year, subject to regulatory and shareholder approvals.