IHH Healthcare Berhad has finally secured approval from the Securities and Exchange Board of India (SEBI) to move ahead with its long-pending open offer for Fortis Healthcare and Fortis Malar Hospitals, marking a major breakthrough in a deal that has been stalled for over seven years.
The Malaysian healthcare group, through its subsidiary Northern TK Venture (NTK), will now proceed with the acquisition process by subscribing to over 235 million new shares of Fortis Healthcare through a preferential allotment. This transaction triggers a mandatory open offer for around 197 million shares, representing about 26.1% of Fortis Healthcare’s expanded voting capital. In addition, IHH will launch a similar offer for 4.89 million shares of Fortis Malar Hospitals, equivalent to 26.11% of its voting share capital.
The open offer, originally announced in 2018 at an offer price of ₹170 per share, was delayed due to ongoing legal disputes and regulatory hurdles. Since then, Fortis Healthcare’s share price has significantly appreciated—now trading at nearly ₹980—raising questions over whether the offer price will be revised to align with current market values.
The delay largely stemmed from a complex legal battle involving Fortis’ former promoters, Malvinder and Shivinder Singh, and Japanese firm Daiichi Sankyo, which had sought to enforce an arbitration award related to the Ranbaxy sale. Following a Supreme Court order in 2022 that partially cleared the legal roadblocks, SEBI’s latest approval effectively paves the way for IHH to proceed with the transaction.
IHH had previously stated that Daiichi Sankyo’s legal actions had obstructed the open offer process, and in May 2025, the company sought damages amounting to JPY 200 billion for the delays and reputational impact caused.
With SEBI’s green signal now in place, IHH Healthcare is expected to initiate the open offer soon, marking a critical step in its strategy to strengthen its foothold in India’s fast-growing healthcare market. Industry analysts view this as a potential turning point for both IHH and Fortis Healthcare, signaling renewed momentum in India’s hospital consolidation space and a likely rise in investor confidence across the healthcare sector.