In a major development for the Indian healthcare sector, Malaysia-based IHH Healthcare Berhad (IHH) has received approval from the Securities and Exchange Board of India (SEBI) to increase its shareholding in Fortis Healthcare Limited.

The decision clears the way for IHH, one of Asia’s largest healthcare groups, to move forward with its long-pending plan to expand its stake in Fortis, strengthening its presence in India’s rapidly growing healthcare market.

IHH currently holds approximately 31% stake in Fortis Healthcare, acquired in 2018 through a bidding process. The latest approval from SEBI will allow IHH to proceed with an open offer to acquire up to 26% additional shares from public shareholders, as originally proposed. This could potentially raise IHH’s total shareholding in Fortis to a majority stake of 57%, granting it greater strategic control of the company.

The development comes after prolonged legal hurdles and regulatory reviews delayed the process for several years. With this clearance, industry experts believe Fortis is set to receive fresh impetus in terms of governance, capital infusion, and long-term strategic growth.

A spokesperson from IHH Healthcare said: “We welcome SEBI’s approval, which allows us to deepen our commitment to Fortis Healthcare and the Indian healthcare market. Our goal is to strengthen Fortis as a leader in healthcare delivery, ensuring better outcomes for patients and sustainable growth for stakeholders.”

Market analysts have noted that the move could bolster investor confidence and provide Fortis with an opportunity to accelerate expansion, upgrade technology, and enhance patient care across its hospital network in India.

The open offer process is expected to be initiated soon, subject to compliance with SEBI regulations and other statutory approvals.