IHH Healthcare Moves to Acquire Additional 26.1% Stake in Fortis Healthcare

Malaysia-based IHH Healthcare Bhd has announced a mandatory open offer to acquire an additional 26.1% stake in Fortis Healthcare Ltd. The move forms part of a wider transaction involving a preferential allotment of new shares and a parallel open offer for Fortis Malar Hospitals Ltd. This development follows regulatory approval and marks another step in IHH’s efforts to strengthen its presence in India’s healthcare market.

Details of the Transaction

The open offer follows the proposed subscription of 235.3 million new equity shares in Fortis Healthcare through a preferential allotment to Northern TK Venture Pte Ltd, an indirect wholly owned subsidiary of IHH. Once completed, this transaction will further consolidate IHH’s holding in Fortis, where it already holds a significant stake acquired in 2018.

According to the filings made by both companies, the open offer will take place between October 20 and November 4 2025. As part of this broader transaction, IHH will also make an open offer to acquire up to 26.11% of Fortis Malar Hospitals Ltd, a subsidiary of Fortis Healthcare.

Independent Committees Support the Offer

The independent directors’ committees (IDC) of both Fortis Healthcare and Fortis Malar Hospitals released their recommendations on October 16, expressing support for the open offer. These recommendations were disclosed through stock exchange filings and are expected to be included in pre-offer advertisements.

This marks a key step in IHH’s renewed bid to increase its ownership after previous delays caused by legal and regulatory hurdles. The process was earlier held up by a Supreme Court stay, which was lifted in 2024, paving the way for this open offer to proceed.

Market Reaction and Performance

As of 10:17 AM on October 17, 2025, the Fortis Healthcare share price stood at ₹1,097, up by 0.21%. The company’s market capitalisation reached ₹82,842 crore, indicating steady investor interest in the healthcare segment. Over the trading period, the stock recorded a high of ₹1,105 and a low of ₹521.

Fortis Healthcare’s financial indicators show a price-to-earnings (P/E) ratio of 90.1 and a book value of ₹118 per share. The stock maintains a return on capital employed (ROCE) of 12% and a return on equity (ROE) of 10.1%, along with a dividend yield of 0.09%.

Read More:SEBI Approves IHH's Long-Pending Open Offer For Fortis And Fortis Malar

Conclusion

The open offer comes at a time when India’s healthcare industry continues to witness consolidation and strategic investments. The planned acquisition is expected to strengthen operational integration and market presence, reinforcing the group’s position within India’s expanding private healthcare landscape.

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