How did IHH Healthcare manage to nurse Fortis hospitals back to health

After a bruising bidding war four years ago, Fortis has moved to pare its debt and expand modestly

After Malaysian major IHH Healthcare won a hard-fought bidding war to acquire a 31.1 per cent stake in Fortis Healthcare in July 2018, the beleaguered hospital chain is finally off the critical list.

The hospital chain has not only pared debt, improved its net worth and become profitable (see chart), but it has also managed to expand modestly. Its stock price has recovered, too, from Rs 140-145 levels on the BSE in August 2018 to Rs 300 levels now.

So how did IHH manage to nurse Fortis back to health? Soon after it acquired its stake, IHH infused Rs 4,000