The Securities and Exchange Board of India (SEBI) has finally approved IHH Healthcare Berhad’s long-delayed open offer for a 26.1% stake in Fortis Healthcare and its subsidiary, Fortis Malar Hospitals, nearly seven years after the Malaysian firm initially acquired a 31.1% stake in the Indian hospital chain.
Background of the Delay
The open offer, first proposed in 2018, was stalled due to prolonged legal disputes between Daiichi Sankyo and Fortis Healthcare’s former promoters, the Singh Brothers — Malvinder and Shivinder. Daiichi Sankyo sought enforcement of a Singapore arbitral award of ₹3,500 crore, which became a major hurdle in completing the open offer.
SEBI’s approval, granted in its October 1, 2025 letter, allows IHH to move forward with the offer, which was originally scheduled for December 2018 – January 2019, involving a total consideration of ₹3,300 crore.
Legal Tussle Recap
- IHH acquired a 31.1% stake in Fortis Healthcare in 2018, outbidding rivals including the Manipal-TPG consortium.
- The Supreme Court imposed a status quo in December 2018 on the sale of controlling stakes following Daiichi Sankyo’s plea, halting the open offer.
- The enforcement of the foreign arbitral award, legal proceedings, and challenges from the former promoters delayed IHH’s additional acquisition by several years.
Significance of SEBI Approval
The SEBI nod clears the path for IHH Healthcare to acquire the additional 26.1% stake, ending a seven-year wait since the initial acquisition. This move strengthens IHH’s footprint in India’s private healthcare sector, complementing its network across Asia.
Fortis Healthcare is among India’s leading hospital chains, with a strong presence in specialty and multi-specialty care, while IHH Healthcare Berhad operates globally across India, Malaysia, and Singapore, focusing on expanding premium healthcare services.
Summary
- SEBI approval received for IHH’s 26.1% Fortis open offer after a seven-year delay.
- Legal disputes with Daiichi Sankyo and former promoters stalled the offer since 2018.
- The approval allows IHH to consolidate its stake and expand its presence in India’s private healthcare market.
- Fortis Healthcare remains a top multi-specialty hospital chain in India, now under increased IHH influence.
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