Fortis Healthcare Ltd
Fortis Healthcare Ltd (FORTIS)

Fortis Healthcare Ltd (FORTIS)


Key Stats

Day's Price Range
52-Week Price Range
1 Month Return-10.27 %
3 Month Return9.13 %
1 Year Return-1.51 %

Company Financials

  • Quarterly
  • Annual
Value in ₹ crore

Peer Comparsion

Rank 2
Rank 4
Rank 2
Dividend Yield
Rank 3
Rank 4
Price To Book Ratio
Rank 1
Debt To Asset
Rank 2

Company Information

Fortis Healthcare Limited FHL is amongst the leading healthcare delivery chains in the country currently encompassing both hospitals and diagnostics businesses. It operates a network of 34 hospitals across the country and internationally with a bed capacity of more than 4600 which catered to more than 2.6 million patients in FY17. These hospitals include multispecialty hospitals as well as superspecialty centers providing tertiary and quaternary healthcare to patients in areas such as cardiac care orthopedics neurosciences oncology renal care gastroenterology and mother and child care. They are delivering quality healthcare services to patients in modern facilities using advanced technology. Fortis Healthcare also has presence in Dubai Mauritius and Sri LankaSRL Limited a subsidiary of FHL is primarily involved in providing diagnostics services and is amongst the leading diagnostics chains in India with a significant market share in the organized diagnostics segment. It had a network of 356 laboratories and 5245 collection points as of FY17. FHL currently owns a fully diluted stake of 56.6 in SRL.Fortis Healthcare Ltd was incorporated on February 28 1996. The company commenced their commercial operation by setting up the Fortis Heart Institute and MultiSpeciality Hospital at Mohali in the year 2001. In December 2002 International Hospital Ltd became a board controlled subsidiary of the company.In August 2003 Fortis Hospital in Amristar was inaugurated. In October 2003 the company executed an agreement with Seth Jessa Ram and Bros Charitable Hospital Trust for the operation and management of Jessa Ram Hospital New Delhi and Fortis Hospital in Noida was commissioned in August 2004.In September 28 2005 the company acquired 90 interest in Escorts Heart Institute Research Centre Ltd that owns and operates three hospitals in north India and operates a fourth hospital in collaboration with the Government of Chhattisgarh.In January 2006 the company signed an agreement with Sunrise Medicare Private Ltd for the operation and management of Fortis La Femme New Delhi. They also signed and agreement with Khalil Public Welfare Trust for the operation and maintenance of Khyber Medical Institute Srinagar. In March 20 2006 the company acquired 99.86 interest in International Hospital Ltd and 100 interest Oscar BioTech Private Ltd from the Promoter Group for total consideration of Rs 301.5 million and Rs 30.5 million respectively.In February 14 2007 the company acquired 100 interest in Hiranandani Healthcare Pvt Ltd for consideration of Rs 10 million. Hiranandani Healthcare Pvt Ltd had an agreement with Navi Mumbai Municipal Corporation to develop a superspecialty hospital in West India.During the year 200708 the company successfully completed an initial public offer of 45996439 equity share of Rs 10 each at a premium of Rs 96 per share. International Hospital Ltd and Oscar Investments Ltd acquired 48.83 and 13.34 stake respectively in Malar Hospitals Ltd for a total consideration of approx Rs 35 crore. Also they launched Fortis Escorts Hospital in Jaipur which focus on Cardiac Sciences Neuro Sciences Renal Sciences and Gastrointestinal diseases.During the year 200809 Fortis Healthcare International Limited FHIL was incorporated as a wholly owned stepdown subsidiary of the company. Through this subsidiary the company acquired 28.89 stake in Medical and Surgical Centre Ltd a company that owns Mauritiuss largest private hospital Clinique Darne which was rechristened as Fortis Clinique Darne.In January 2009 the company became a majority stake holder in Lalitha Healthcare Pvt Ltd Bangalore consequent to conversion of preference capital and fresh infusion of equity capital and the subsidiary company was renamed as Fortis Hospital Seshadripuram.In June 18 2009 the company incorporated a wholly owned subsidiary viz. Fortis Hospitals Ltd. The a main objects the subsidiary includes purchase lease or otherwise acquire establish maintain operate run manage or administer hospitals medicare healthcare diagnostic health aids and research centre.In August 24 2009 the company through a wholly owned subsidiary Fortis Hospitals Ltd entered into a Business Transfer Agreement with Wockhardt Hospitals Ltd for acquisition of 10 Hospitals including two under construction for an aggregate sum of Rs. 90900 lakh. They completed the acquisition of 10 Hospitals including 2 under construction together with the acquisition of 10250 equity shares of Kanishka Housing Development Company Ltd on December 17 2009 from Wockhardt Hospitals Ltd on a going concern basis.International Hospital Ltd a wholly owned subsidiary of the company increased their shareholding from 49.86 to 50.02 in the equity share capital of Malar Hospitals Ltd MHL by purchase of 30000 equity shares of MHL from open market thereby making MHL as a subsidiary International Hospital Ltd with effect from October 01 2009.In March 11 2010 the company entered into a definite agreement with TPG Capital one of the leading private investment firms for acquiring the 23.9 stake in Parkway Holdings Ltd Singapore one of the Asias healthcare service provider.During the financial year 201213 Fortis Healthcare launched two new hospitals in India one in Kangra Himachal Pradesh and the other in Dehradun Uttarakhand.In May 2013 the Issue Committee of the Board of Directors of Fortis Healthcare allotted 34993030 equity shares of the company at an issue price of Rs. 92 per equity share aggregating to Rs. 3219.4 million under the institutional placement programme IPP undertaken by the company. During the month Fortis Healthcare International Pte Ltd a subsidiary of Fortis Healthcare Ltd divested its 64 stake in Dental Corporation Holdings Ltd DC Australia to Bupa for a consideration of Aus 276 million.In June 2013 the Issue Committee of the Board of Directors of the company allotted 18833700 equity shares of the company to International Finance Corporation on a preferential basis at an issue price of Rs. 99.09 per equity share aggregating to Rs. 1866.2 million. Further in June 2013 the company allotted 550 Foreign Currency Convertible Bonds FCCBs of USD 100000 each to International Finance Corporation IFC on a preferential basis at an issue price of USD 100000 per FCCB aggregating to USD 55 million. With the allotment of FCCBs coupled with the preferential allotment of equity shares and its participation in the Institutional Placement Programme IPP International Finance Corporation has made a total investment of USD 100 million.In August 2013 the company successfully launched and concluded the issue of its FCCBs amounting USD 30 million which was listed on Singapore Stock Exchange. The conversion price of the FCCBs is Rs. 99.09 per Equity Share of the company. In September 2013 the company issued 3.74 million equity shares to Standard Chartered Private Equity Limited for an aggregate consideration of Rs. 37 crore on a preferential basis.In October 2013 Fortis Healthcare Ltd sold its 100 stake in Altai Investments Limited the holding company for Quality Healthcare QH Hong Kong to Bupa for USD 365 million.In March 2015 Fortis Healthcare announced the sale of its Singapore hospital to Concord Medical Services International Pte Ltd CCM for a consideration of SGD 55 million with the deal being consummated in April 2015.In line with its stated strategy to focus on India Fortis Healthcare in Q1 of FY 2016 completed the last of its international divestments i.e. RadLink and Fortis Surgical Hospital in Singapore for a sale consideration of SGD 166 million in total.In Q2 FY16 Fortis Healthcare increased its equity stake in SRL Limited taking its stake to 56 from 53.9 previously. It acquired a 3.1 stake from Sabre Partners Trust Spring Healthcare P Limited and Spring Healthcare India Trust. In September 2015 Fortis Healthcare launched La Femme a comprehensive and distinctive boutique hospital for women offering a holistic range of medical services catering to all stages of a womans life at Richmond Road Bengaluru. Fortis La Femme has been conceptualised keeping in mind contemporary women and the multiple roles they play. During Q3 FY16 Fortis Healthcare acquired a 100 equity stake in Religare Health Trust Trustee Manager Pte Ltd a company incorporated in Singapore that acts as Trustee Manager to Religare Health Trust RHT of which the company is Sponsor. Since the majority of the assets owned by RHT are operated by Fortis and its subsidiaryies in order to have a more focused approach towards them strategically it is decided to align the Trustee Manager RHTTM of RHT with the Sponsor of RHT.In February 2016 Fortis Healthcares Board of Directors approved the acquisition of 51 economic rights in Fortis Hospotel Limited FHTL a subsidiary of the Religare Health Trust RHT. The net investment consideration for the transaction is estimated to be approximately Rs. 740 Crore net of receipt of dividend. As a result of the majority acquisition of FHTL it will become a subsidiary of Fortis and hence be consolidated with Fortis. The transaction will result in lower service fees .i.e. net business trust fees that Fortis pays to the RHT thereby positively impacting its operating profitability EBITDA. The company in August 2016 announced the demerger of its diagnostics business and has since received a number of the required regulatory clearances. It filed a Composite Scheme of Arrangement and Amalgamation demerger of diagnostics business with the National Company Law Tribunal NCLT Chandigarh and has subsequently got approval from all shareholders and creditors of Fortis Healthcare SRL Limited and Fortis Malar. In October 2016 the company completed the acquisition of 51 economic interest in Fortis Hospotel Limited FHTL from RHT Health Trust resulting in a significant reduction in net BT costs down 19 during the year. During the financial year 201617 Fortis Healthcare issued shares in lieu of the conversion notice received by it from the FCCB holders for its USD 85 million equivalent bonds i.e. USD 30 million bonds listed on the SGX and USD 55 million bonds held by the International Finance Corporation IFC. The resulting capital post this conversion stands at approx. 51.7 Crore equity shares excluding outstanding ESOPs with a face value of Rs 10 per share. Post the above conversions there are no further outstanding FCCBs /other convertible instruments.Pursuant to the High Court judgement on the Promoters Daichi Sankyo case Mr Malvinder Mohan Singh Executive Chairman and Dr Shivinder Mohan Singh NonExecutive Vice Chairman have resigned from the Board. The resignation was accepted by the Board on 13 February 2018.On 27 March 2018 the Board of Directors of Fortis Healthcare FHL approved the demerger of its hospitals business Fortis Hospitals into Manipal Hospital Enterprises Private Limited. The Board has also approved sale of its 20 stake in SRL Limited SRL to Manipal Hospitals. The resultant entity Manipal Hospitals will be a publicly traded company listed on NSE and BSE. The remaining FHL will be an investment holding company with 36.6 stake in SRL. As part of the proposed transaction Dr. Ranjan Pai and TPG will invest Rs 3900 crore into Manipal Hospitals. The funds will be utilized by Manipal Hospitals to finance the acquisition of 50.9 stake in SRL 20.0 from FHL and 30.9 from other investors for which discussions are currently underway. In addition the investment will support the proposed acquisition of hospital assets owned by RHT Health Trust RHT and the growth of the hospitals and the diagnostics businesses. Manipal Hospitals part of Manipal Education and Medical Group MEMG is owned by Dr. Ranjan Pai and has been backed by TPG a leading global alternative asset firm and experienced healthcare investor since 2015. It is the 4th largest hospital chain in the country with a strong presence in South India.On 17 April 2018 Fortis Healthcare received an unsolicited nonbinding expression of interest from Fosun Health Holdings Limited a wholly owned subsidiary of Fosun International Limited Fosun International a company listed on the Hong Kong Stock Exchange with a proposal of primary infusion at a price upto Rs 156/share subject to due diligence to be completed within three weeks upto a total investment of USD 350 million including a preliminary investment of upto Rs 100 crore and further subject to certain conditions as mentioned in the offer letter.On 19 April 2018 Fortis Healthcare received an unsolicited nonbinding expression of interest from Radiant Life Care Private Limited with a proposal for making investment and/or restructuring the company subject to certain conditions as mentioned in the offer letter.On 19 April 2018 Fortis Healthcare announced that the company has received binding offers from Manipal/TPG consortium and Munjal Burman family offices and has also received nonbinding expression of interests from IHH Healthcare Berhad and Fosun Health Holdings Limited. The Board of Directors of Fortis Healthcare Limited have approved the appointment of an expert advisory committee to evaluate binding offers. The Board has over the last many months been involved in deliberations for a potential transaction with the objective of partnering with strong players that would help the company strategically and financially and towards this end has engaged with several potential investors before entering into a transaction with Manipal/TPG consortium on 27 March 2018. In exercise of its fiduciary duties the Board has decided to evaluate the binding offers and has appointed an advisory committee and also directed Standard Chartered Bank SCB to assist the committee.The Board of Directors of Fortis Healthcare at its meeting held on 10 May 2018 decided by majority to recommend the binding offer of the Hero and Burman consortium. The entire exercise involved a process that witnessed deliberation and recommendation by an Independent Expert Advisory Committee EAC comprising Mr Deepak Kapoor Former Chairman of PWC India and Mr Lalit Bhasin Chairman of the Indian Society of Law Firms along with two reputed financial advisors i.e. Standard Chartered Bank and Arpwood Capital and Cyril Amarchand Mangaldas who were the legal advisors. The Board of Directors of Fortis Healthcare Limited received a letter from Hero Enterprise Investment Office and the Burman Family Office MunjalBurman Consortium on 28 May 2018 enabling the Board to initiate a fresh bidding process. As a result MunjalBurman Consortiums offer accepted by the Board on 10 May 2018 stands mutually terminated and the Board in its meeting held on 29 May 2018 decided to initiate a fresh timebound process to optimize the companys and shareholders short and long term interests Process. Based on the suitability of the offers evaluated earlier the Board decided to invite 3 three of the bidders namely MunjalBurman Consortium TPGManipal Consortium and IHH Healthcare Berhad Invited Bidders to participate in the Process no later than 5 p.m. IST on 31 May 2018. Other interested parties Other Bidders were also invited to submit an Expression of Interest EOI no later than 5 p.m. IST on 31 May 2018.On 30 May 2018 Fortis Healthcare International Limited a wholly owned subsidiary of Fortis Healthcare Limited sold off 18.2 million units of RHT Health Trust an associate of the company.The Board of Directors of Fortis Healthcare at its meeting held on 13 June 2018 approved withdrawal of the composite scheme of arrangement and amalgamation between the company Fortis Malar Hospitals Limited FMHL SRL Limited SRL and their respective shareholders and creditors.
OrganisationFortis Healthcare Ltd