The ongoing forensic audit into the alleged diversion of shares by Fortis Healthcare’s former promoters will not restrict Malaysia-based IHH Healthcare from increasing its stake in the hospital chain, Fortis Managing Director and CEO Dr Ashutosh Raghuvanshi has clarified.
Speaking during Fortis Healthcare’s second-quarter earnings call, Raghuvanshi said IHH has expressed its intention to raise its ownership in Fortis beyond 50 per cent at the prevailing market price. IHH currently holds a 31.17 per cent stake in the hospital operator.
According to the management, increasing IHH’s holding beyond 50 per cent could bring approximately Rs 10,000 crore in additional capital into Fortis over time.
Raghuvanshi clarified that the Supreme Court-directed forensic audit does not impose any restriction on IHH’s proposed investment. The audit is specifically examining the alleged dissipation of shares by Fortis’ former promoters amid the legal dispute involving Daiichi Sankyo.
He said the company had obtained legal opinions from multiple sources, all indicating that there was no legal impediment to IHH increasing its shareholding.
However, the timing and scale of any fresh investment would depend on Fortis’ funding requirements and IHH’s investment decisions.
The management also stated that Fortis is adequately funded to support its ongoing expansion plans through internal accruals and debt. The company would seek additional capital from IHH when the need arises.
Providing an update on the forensic audit, Raghuvanshi said the auditors had been appointed and had issued information requisitions to the company. Fortis has submitted the required documents and information.
The Supreme Court had initially indicated a six-month timeline for completing the audit, and the company expects the process to be concluded within the stipulated period.
