In a significant development for the Indian healthcare sector, IHH Healthcare Berhad has received approval from the Securities and Exchange Board of India (SEBI) to proceed with open offers for Fortis Healthcare Limited and its subsidiary, Fortis Malar Hospitals Limited. This approval marks a crucial step forward in a transaction that has been in regulatory limbo since 2018.

Transaction Details

The approved transaction consists of three key components:

1. Preferential Allotment: IHH's subsidiary, Northern TK Venture Pte Ltd, will subscribe to 235,294,117 new Fortis shares through a preferential allotment.

2. Fortis Healthcare Open Offer: A mandatory open offer for up to 197,025,660 Fortis shares, representing 26.10% of the expanded voting capital.

3. Fortis Malar Hospitals Open Offer: A mandatory open offer for up to 4,894,308 Malar shares, representing 26.11% of the voting capital.

Regulatory Approval

SEBI's approval letter allows IHH to move forward with both open offers. This decision comes after a protracted regulatory process that began in 2018, highlighting the complexity and duration of the transaction.

Company Disclosures

Fortis Healthcare Limited, in compliance with SEBI Listing Regulations, disclosed this development to the stock exchanges. The company's announcement references an earlier communication from December 17, 2018, underscoring the extended timeline of this corporate action.

Market Impact

The approval is expected to have significant implications for both Fortis Healthcare and Fortis Malar Hospitals. Investors and market watchers will likely be keen to observe how this development affects the shareholding structure and strategic direction of these healthcare entities.

Looking Ahead

While this approval marks a crucial milestone, the completion of the open offers will be the next key event to watch. Fortis Healthcare has committed to keeping the stock exchanges informed of any material developments in this matter.

As this long-awaited transaction moves forward, it could potentially reshape the landscape of India's private healthcare sector, with IHH Healthcare Berhad poised to strengthen its position in the Indian market.

Shareholders and potential investors of Fortis Healthcare and Fortis Malar Hospitals are advised to monitor further announcements for updates on the progress of these open offers.

Fortis Healthcare Limited has announced a significant operational move by signing an Operations and Maintenance (O&M) agreement for Gleneagles BGS Hospital in Karnataka. The healthcare giant confirmed that the agreement is set to take effect on October 1, 2025, marking a new chapter in its operational expansion.

Agreement Details

The company disclosed the information through a regulatory filing to the National Stock Exchange of India Ltd. and BSE Limited on October 1, 2025. According to the filing, Fortis Healthcare and Gleneagles Healthcare India Private Limited have mutually agreed that the O&M Agreement will become effective from October 1, 2025, specifically for the Gleneagles BGS Hospital in Karnataka.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015. Fortis Healthcare's Company Secretary and Compliance Officer, Satyendra Chauhan, signed off on the regulatory filing, ensuring transparency and adherence to market regulations.

Prior Developments

This agreement follows an earlier intimation by Fortis Healthcare on July 23, 2025, regarding operation and maintenance services with Gleneagles Healthcare India Private Limited. The latest announcement confirms the finalization of the agreement and its effective date.

Conditions Precedent

The company stated that the agreement's effectiveness was subject to receiving necessary acceptances or No Objection Certificates (NOCs) from relevant third parties. These conditions have been met, paving the way for the agreement to come into force as planned.

Implications for Fortis Healthcare

This O&M agreement represents a strategic move for Fortis Healthcare, potentially expanding its operational footprint in Karnataka. By taking on the operations and maintenance of Gleneagles BGS Hospital, Fortis is likely aiming to strengthen its presence in the region and enhance its service offerings.

The healthcare sector continues to evolve, and such operational agreements between major players could signal a trend towards more collaborative and efficient healthcare management models. As this agreement takes effect in October 2025, stakeholders will be keen to observe its impact on Fortis Healthcare's operational metrics and overall performance in the coming years.