NewsCorporate ActionsIHH Healthcare Launches Open Offer for Additional Stake in Fortis HealthcareIHH Healthcare Launches Open Offer for Additional Stake in Fortis Healthcare
Malaysia-based IHH Healthcare has initiated a mandatory open offer to acquire an additional 26.1% stake in Fortis Healthcare, running from October 20 to November 4, 2025. The offer includes a parallel bid for up to 26.11% stake in Fortis Malar Hospitals Ltd, a Fortis subsidiary. This move follows IHH's proposed subscription of 235.3 million new equity shares in Fortis through preferential allotment. Independent directors' committees of both Fortis Healthcare and Fortis Malar Hospitals have endorsed the offer. Fortis Healthcare's shares closed at ₹1,095.00 prior to the announcement.
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Malaysia-based IHH Healthcare has initiated a significant move to increase its stake in Fortis Healthcare, a major player in the Indian healthcare sector. The company has launched a mandatory open offer to acquire an additional 26.1% stake in Fortis Healthcare, demonstrating its commitment to strengthening its position in the Indian market.
Key Details of the Open Offer
| Aspect | Details |
|---|---|
| Offer Period | October 20 to November 4, 2025 |
| Target Stake | Additional 26.1% in Fortis Healthcare |
| Method | Mandatory open offer |
| Parallel Offer | Up to 26.11% stake in Fortis Malar Hospitals Ltd (Fortis subsidiary) |
Background and Context
IHH Healthcare's move follows a proposed subscription of 235.3 million new equity shares through preferential allotment to Northern TK Venture Pte Ltd, IHH's wholly owned subsidiary. This action builds upon IHH's existing significant stake in Fortis, which was initially acquired in 2018.
The path to this open offer has not been without challenges. IHH's efforts to increase its stake in Fortis were previously delayed due to legal and regulatory hurdles, including a Supreme Court stay. However, with the lifting of this stay in 2024, IHH has been able to proceed with its plans.
Corporate Governance and Approval
Independent directors' committees of both Fortis Healthcare and Fortis Malar Hospitals Ltd have backed the offer. This endorsement suggests that the corporate governance bodies of the involved entities view the offer favorably.
Market Response
Fortis Healthcare's shares closed at ₹1,095.00 prior to the announcement, indicating investor interest in the company's future prospects.
Implications and Outlook
This open offer represents a significant step in IHH Healthcare's strategy to strengthen its presence in the Indian healthcare market. By seeking to increase its stake in Fortis Healthcare, IHH is positioning itself to play a larger role in one of the world's fastest-growing healthcare markets.
The successful completion of this open offer could lead to changes in the management and strategic direction of Fortis Healthcare, potentially impacting the competitive landscape of the Indian healthcare sector. Stakeholders, including investors, employees, and patients, will be keenly watching how this development unfolds and its implications for the future of healthcare services in India.
As the offer period approaches, market analysts and investors will likely be monitoring the situation closely, assessing the potential impact on both IHH Healthcare and Fortis Healthcare's market positions and financial performance.
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