FORTIS

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, April 13 (Reuters Breakingviews) - Feverish demand for private medical care in India will aid Temasek as it lines up a $1.2 billion initial public offering of Manipal Hospitals, the country's largest chain with 12,000 beds. Yet at a mooted $13 billion valuation, the Singapore sovereign investor may be stretching too far to crystallise a strong exit on one of its rare controlling stakes.

Its 51% holding in Manipal is part of Temasek’s S$434 billion ($324 billion) global portfolio which boasts a growing footprint in India. The South Asian country accounts for about 8% of underlying assets, up from 5% a decade ago. Its exposure could rise higher in the coming years under Piyush Gupta; in November, Temasek appointed the former DBS Group DBSM.SI chief executive as its India chair. Manipal’s listing hands the bank its first IPO mandate in India.

The Singaporean investment firm valued the company at just under $5 billion in 2023 when it picked up a 41% stake for $2 billion. At the time, Manipal founder and Chair Ranjan Pai said the business needed "long-term patient capital". It has acquired five hospital brands since Temasek first invested in it in 2017. Meanwhile, revenue is set to grow 27% in the financial year to the end of March 2026, based on annualising results in the six months to the end of September in its IPO prospectus, with a 6% net profit margin.

At a time when global investors are cooling on Indian equities, it helps that Manipal's footprint is concentrated in the southern states where incomes are higher and patients older. Even so, the targeted headline valuation for the hospital chain would value it at 107 times its annualised first-half earnings, Breakingviews calculates, nearly double the multiple of its top three rivals Apollo Hospitals APLH.NS, Fortis Healthcare FOHE.NS and Max Healthcare MAXE.NS. Manipal is more efficient than its rivals yet its average revenue per bed is only about 5% higher than Apollo Hospitals' and 4% higher than Fortis Healthcare.

True, hospital valuations have swung wildly in India, with Apollo's nearly halving from two years ago but Temasek doesn't need such a grand debut for its bet on Manipal to stack up, and forcing one could cast a shadow over its ambitions to increase its exposure to the country.

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CONTEXT NEWS

India's Manipal Health ‌Enterprises filed for an up to $1.17 billion initial public offering on March 23. The initial public offering comprises a fresh issue to raise $852.2 million and an offer for sale by existing investors including Singapore's Temasek, U.S. investment firm TPG, Manipal Education and Novo Holdings, according ⁠to its draft prospectus.

The company is targeting a valuation of up to $13 billion, Bloomberg reported on March 24, citing people familiar with the matter.

(Editing by Una Galani; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/[email protected]))

April 1 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• UNIT RECEIVES INCOME TAX ORDER WITH DEMAND OF 1.49 BILLION RUPEES

Source text: ID:nBSE7Q2chs

Further company coverage: FOHE.NS

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Feb 13 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• FORTIS HEALTHCARE DEC-QUARTER CONSOL NET PROFIT 1.97 BILLION RUPEES

• FORTIS HEALTHCARE LTD DEC-QUARTER CONSOL REVENUE FROM OPERATIONS 22.65 BILLION RUPEES

Source text: ID:nNSE4BKNh

Further company coverage: FOHE.NS

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Jan 22 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• INQUIRY DIRECTED AGAINST THIRD PARTY OFFICERS FOR PERJURY

Source text: ID:nNSEbNc38B

Further company coverage: FOHE.NS

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Jan 6 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• TAX AUTHORITY CONFIRMED DEMAND OF 59.8 MILLION RUPEES

Source text: ID:nBSE1jQsYj

Further company coverage: FOHE.NS

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Dec 30 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• GETS ORDERS FOR TAX DEMANDS AGGREGATING TO 214 MILLION RUPEES

Source text: ID:nNSE67r4w6

Further company coverage: FOHE.NS

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Dec 3 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• FORTIS HEALTHCARE LTD - ESCORTS HEART INSTITUTE FILES WRIT PETITION AGAINST CGST DELHI

Source text: ID:nBSE1QgJvt

Further company coverage: FOHE.NS

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Oct 1 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• FORTIS HEALTHCARE LTD - O&M AGREEMENT EFFECTIVE OCT 1, 2025 FOR GLENEAGLES BGS HOSPITAL

Source text: ID:nBSE30mBXC

Further company coverage: FOHE.NS

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** Shares of Fortis Healthcare FOHE.NS rise 5% to 900.95 rupees

** Co's Q1 consol net profit rises 53.3% Y/Y to 2.67 bln rupees ($29.7 mln)

** Q1 consol revenue jumps 16.6% Y/Y to 21.67 bln rupees

** Trading vols at 2 mln shares so far, over 1.3x the 30-day average

** FOHE up ~25% YTD

($1 = 87.6810 Indian rupees)

(Reporting by Vijay Malkar)

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July 23 (Reuters) - IHH Healthcare Bhd IHHH.KL:

• FORTIS HEALTHCARE AND GLENEAGLES HEALTHCARE INDIA DEEPEN COLLABORATION TO STRENGTHEN BUSINESS GROWTH

• UNDER OPERATION AND MAINTENANCE SERVICES AGREEMENT, FORTIS WILL MANAGE OPERATIONS OF 5 OUT OF 6 HOSPITALS UNDER GLENEAGLES INDIA NETWORK

Further company coverage: IHHH.KL

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** India's Fortis Healthcare FOHE.NS jumps 7.7%, set to snap three-session losing streak

** Hospitals operator expects ~15% rev growth in FY26 and double-digit pct growth in diagnostics business

** Jefferies analysts say that is much higher than what they "penciled in"

** Ambit Capital analysts say forecast shows benefits from new hospitals will continue to accrue

** Analysts avg rating on FOHE, peers Max Health MAXE.NS and Apollo Hospitals APLH.NS is "buy" -LSEG data

** Session's gains erase FOHE's 2025 losses; Max up ~1% YTD, while Apollo down ~5%

(Reporting by Kashish Tandon in Bengaluru)

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Adds background in paragraphs 3,5-6

May 20 (Reuters) - IHH Healthcare IHHH.KL said on Tuesday its unit has filed a petition in a Tokyo court to revise damages sought from Japan's Daiichi Sankyo 4568.T over its Fortis Healthcare FOHE.NS stake buy to up to 109.3 billion rupees ($1.28 billion).

Northern TK Venture (NTK) — a subsidiary of IHH — had filed a claim in October 2023 alleging the Japanese drugmaker caused losses to the company by preventing it from proceeding with open offers to buy a stake in the Indian hospital chain in 2018.

IHH, Asia's largest healthcare operator, had bought a 31% interest in Fortis through NTK, but later halted its open offer to buy an additional 26% after the Japanese company filed a contempt plea against the founders of the Indian company.

The latest petition filed by NTK seeks another 2.7 million rupees for losses arising from the unit's defamation claim against Daiichi Sankyo and accrued interest on the damages claimed.

An expert report authorised by NTK in February included an analysis and quantification of the damages that NTK suffered based on three scenarios.

The report potentially entitled the unit to damages between 4.24 billion rupees and 109.3 billion rupees.

Malaysia's IHH had initially approached a Tokyo district court in November 2023, seeking an order directing Daiichi Sankyo to pay 20 billion yen as damages to NTK.

The next hearing is scheduled for July 11, IHH said.

Daiichi Sankyo and Fortis did not immediately respond to Reuters' requests for comment.

($1 = 85.5530 Indian rupees)

($1 = 144.5200 yen)

(Reporting by Shivangi Lahiri in Bengaluru; Editing by Shilpi Majumdar)

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May 5 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• RECTIFICATION ORDER RECEIVED UNDER INCOME TAX ACT

• TAX DEMAND REDUCED TO NIL FOR FORTIS HOSPITALS

Source text: ID:nBSEkJg5n

Further company coverage: FOHE.NS

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April 2 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• DELHI HIGH COURT CONFIRMS SALE OF FORTIS MARKS TO FORTIS HEALTHCARE

Further company coverage: FOHE.NS

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March 21 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• EX-PARTE INJUNCTION ORDER RESTRAINS SALE OF SHRIMANN HOSPITAL

• SHRIMANN HOSPITAL SEEKS AMICABLE SETTLEMENT TO VACATE INJUNCTION ORDER

Source text: ID:nBSE74DDNC

Further company coverage: FOHE.NS

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Updates Feb 6 story to write through, update shares in paragraph 4

Feb 6 (Reuters) - Malaysia's IHH Healthcare IHHH.KL may be entitled to damages of up to $1.25 billion from Japan's Daiichi Sankyo 4568.T for blocking its bid for control of Indian hospital operator Fortis FOHE.NS, according to a report authorised by its unit.

Northern TK Venture (NTK), a subsidiary of IHH Healthcare, has submitted an expert report by Osborne Partners to a Tokyo court, which states the amount of compensation it is entitled to ranges from 4.24 billion rupees to 109.3 billion rupees, according to a statement on Thursday by its parent.

The report includes an analysis and quantification of the damages that NTK suffered based on three scenarios, IHH said.

IHH shares were trading 0.1% higher on Friday trade while the Japanese pharmaceutical firm's stock fell 0.5%. Fortis was trading more or less unchanged in early India trade.

The report comes more than a year after NTK had filed a claim alleging Daiichi caused losses to the firm by preventing it from going ahead with open offers to increase its stake in Fortis in 2018.

IHH, Asia's largest healthcare operator, had bought a 31% interest in the Indian firm through NTK, but later halted its open offer to buy an additional 26% after the Japanese company filed a contempt plea against Fortis' founders.

Fortis, in a filing with India's National Stock Exchange, did not comment on the issue but said it would update shareholders in case of any material developments. Daiichi did not respond to a Reuters request.

The next hearing at the Tokyo court is now scheduled for February 13, according to a separate statement from IHH.

($1 = 87.5600 Indian rupees)

(Reporting by Shivangi Lahiri and Rishav Chatterjee in Bengaluru; Editing by Mrigank Dhaniwala, Leroy Leo and Lincoln Feast.)

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** India's Fortis Healthcare FOHE.NS, One 97 Communications PAYT.NS, Coforge COFO.NS and four other stocks rise between 1% and 5% ahead of MSCI rebalancing announcement post-market hours on Feb. 11

** Eight Indian stocks likely to be included in MSCI indexes, attracting $1.28 billion inflows, says JM Financial Services

** MSCI indexes tracked widely by investors, passive funds globally

** FOHE, PAYT, COFO, and Coromandel International CORF.NS up 5.3%, 2.7%, 1.4% and 1% respectively; JM Financial Services sees high probability of their inclusion

** Blue Star BLUS.NS, Federal Bank FED.NS, Uno Minda UNOI.NS, and GE Vernova TD India GETD.NS are JM Financial's "low conviction" inclusion candidates, up 0.1%-5%

(Reporting by Vivek Kumar M)

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Dec 20 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• ACQUIRES 7.61% EQUITY STAKE IN AGILUS DIAGNOSTICS

• DEAL FOR 4.29 BILLION RUPEES

Source text: ID:nBSE8xX90k

Further company coverage: FOHE.NS

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MUMBAI, Dec 13 (Reuters) - India's Fortis Healthcare FOHE.NS plans to raise 15.50 billion rupees ($182.71 million) through the sale of floating rate bonds maturing in five years, three bankers said on Friday.

The company has invited bids from bankers and investors for the issue on Tuesday, they said.

The issuer will sell these bonds at a spread of 192 basis points over the 12-month Mumbai Interbank Forward Offer Rate (MIFOR) and the coupon will be reset annually.

Fortis Healthcare did not immediately reply to a Reuters email seeking comment.

Here is the list of deals reported so far on Dec. 13:

* Size includes base plus greenshoe for some issues

($1 = 84.8360 Indian rupees)

(Reporting by Dharamraj Dhutia
Editing by Eileen Soreng)

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Nov 8 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• Q2 CONSOL NET PROFIT FROM CONTINUING OPERATIONS 1.76 BILLION RUPEES

• Q2 CONSOL REVENUE FROM OPERATIONS 19.88 BILLION RUPEES

Source text: ID:nBSE3J54vG

Further company coverage: FOHE.NS

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MUMBAI, Oct 11 (Reuters) - India's Fortis Healthcare FOHE.NS plans to raise 15.50 billion rupees ($184.5 million) through the sale of bonds maturing in five years, three bankers said on Friday.

It will invite coupon and commitment bids for the issue next week, they said.

Here is the list of deals reported so far on Oct 11:

*Size includes base plus greenshoe for some issue

($1 = 84.0300 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Varun H K)

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Oct 9 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• ISSUE OF NON-CONVERTIBLE DEBENTURES UP TO 15.50 BILLION RUPEES

Source text for Eikon: ID:nNSE9vSXQW

Further company coverage: FOHE.NS

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Oct 4 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• TO CONSIDER ISSUE OF NON-CONVERTIBLE DEBENTURES

Source text for Eikon: ID:nBSE7zxymR

Further company coverage: FOHE.NS

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Sept 23 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• FORTIS HEALTHCARE - CHAIRMAN RAVI RAJAGOPAL TO STEP DOWN

• FORTIS HEALTHCARE - DESIGNATES INDRAJIT BANERJEE AS CHAIRMAN

Source text for Eikon: ID:nBSEbwCCSM

Further company coverage: FOHE.NS

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** Shares of Fortis Healthcare FOHE.NS rise as much as 2.7% to record high of 566.4 rupees

** The hospitals operator approved acquisition of entire stake in unit Agilus Diagnostics on Friday after market close

** Stock rose in the last six months, gaining 35.3% during the period

** FOHE has been above its 200-day simple moving avgs since June 2023, indicating bullish sentiment

** Avg rating of the 13 analysts is "Buy" and median PT is 547 rupees, ~2.5% lower than current price - LSEG data

** FOHE last up 1.5%, adding to YTD gains of 33.6% so far

(Reporting by Anuran Sadhu in Bengaluru)

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Aug 30 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• FORTIS HEALTHCARE - ACQUISITION BY CO OF ENTIRE STAKE HELD BY PE INVESTORS IN AGILUS DIAGNOSTICS

• FORTIS HEALTHCARE - FOR ACQUISITION OF STAKE IN ADL RAISING FUNDS THROUGH ISSUANCE OF DEBENTURES

Further company coverage: FOHE.NS

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Aug 9 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• PE INVESTORS EXERCISE PUT OPTION FOR STAKE HELD BY THEM IN AGILUS

• PE INVESTORS EXERCISE PUT OPTION FOR 8.05% AND 7.61% STAKE IN AGILUS

Source text for Eikon: ID:nBSE7191ch

Further company coverage: FOHE.NS

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BENGALURU, Aug 6 (Reuters) - India's Fortis Healthcare FOHE.NS on Tuesday reported the resignation of Ravi Rajagopal as the company's chairman, citing his "expanded board commitments in the U.K and other regions".

Rajagopal will also cease to be a member of the company's Corporate Social Responsibility Committee, it added.

His departure will be effective Sept. 30.

Rajagopal was appointed as chairman in June 2018, at a time when the private hospital chain was facing mounting debts and a regulatory probe.

In his resignation letter, Rajagopal said from the time the Group faced various challenges to its current trajectory of sustained performance, it has been a personally fulfilling experience.

(Reporting by Manvi Pant in Bengaluru; Editing by Shailesh Kuber)

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July 5 (Reuters) - Fortis Healthcare Ltd FOHE.NS:

• FORTIS HEALTHCARE - RE-APPOINTMENT OF DR. ASHUTOSH RAGHUVANSHI AS MANAGING DIRECTOR

Source text for Eikon: ID:nBSE283Zxx

Further company coverage: FOHE.NS

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Fortis Healthcare Ltd FOHE.NS:

• FORTIS HEALTHCARE LTD - DIVIDEND OF 1 RUPEE PER SHARE

• FORTIS HEALTHCARE LTD MARCH-QUARTER CONSOL NET PROFIT 2.03 BILLION RUPEES VERSUS 1.38 BILLION RUPEES

• FORTIS HEALTHCARE LTD MARCH-QUARTER CONSOL REVENUE FROM OPERATIONS 17.86 BILLION RUPEES VERSUS 16.43 BILLION RUPEES

Source text for Eikon: ID:nBSE8ZHfwG

Further company coverage: FOHE.NS