IHH Healthcare Plans 51% Fortis Stake and 10,000-Bed

IHH Healthcare plans to increase its stake in Fortis Healthcare to 51 per cent over the next three to five years. The Malaysian healthcare group also aims to expand its Indian hospital network capacity to approximately 10,000 beds by 2031. This strategic move follows the Supreme Court's disposal of a key legal petition, allowing IHH to deepen its long-term investment in India's private healthcare market.

Over the coming years, IHH intends to further integrate its Fortis and Gleneagles platforms in India. The company confirmed its full cooperation with a forensic audit that was the subject of the recent court proceedings.

Background

The decision to proceed comes after a Supreme Court ruling on September 25, 2026. The court disposed of Fortis Healthcare's special leave petition, which had challenged a Delhi High Court order for a forensic audit concerning the company. In a stock exchange filing, Fortis stated that IHH has said it will fully cooperate with this audit.

Historical Context

IHH's initial entry into Fortis occurred in November 2018. Its subsidiary, Northern TK Venture Pte Ltd, acquired a 31% stake through a preferential allotment of newly issued Fortis shares worth Rs 4,000 crore. This investment was accompanied by a mandatory tender offer to public shareholders.

The transaction took place several months after the former promoters, Malvinder Mohan Singh and Shivinder Mohan Singh, resigned from the Fortis board in March 2018. Following their resignation, the company was overseen by a reconstituted three-member independent board appointed by activist minority investors. IHH has stated it had no interaction with the Singh brothers after their resignation and made no payments to them. No secondary shares were acquired from the former promoters.

Regulatory and Market Position

IHH has described its 2018 acquisition as a transparent and fully regulated competitive bidding process. The transaction secured all mandatory corporate, shareholder, and regulatory approvals, including clearances from the Competition Commission of India and under Sebi takeover regulations.

The group, which operates brands like Acibadem, Gleneagles, and Parkway across 10 countries, reaffirms India as a key strategic market. IHH said it intends to deepen its footprint and ramp up investments in the country through Fortis. It expressed confidence that an independent review will objectively establish the facts surrounding its 2018 investment.

Clarifications

Regarding a separate dispute between Fortis and Daiichi Sankyo, IHH clarified it was not a party to that dispute or any related execution proceedings. The company stated it suffered losses due to delays in obtaining mandatory tender offer approvals for its Fortis acquisition, despite not being involved in the Daiichi Sankyo case.

IHH Healthcare plans to increase its stake in Fortis Healthcare to 51 per cent over the next three to five years, integrate Fortis and Gleneagles platforms, and expand capacity to approximately 10,000 beds by 2031 to meet India's growing healthcare needs.