Fortis Healthcare inks O&M services agreement with Gleneagles Healthcare 

Shares of Fortis Healthcare Ltd. gained on Wednesday, July 23, after the company signed an operation and management (O&M) services agreement with Gleneagles Healthcare India (GHIPL).

The agreement covers five hospitals and one clinic operated by GHIPL in India.

GHIPL is a related party as it is a subsidiary of IHH< which is the parent entity of Fortis' promoter. Fortis will receive a monthly service fee equal to 3% of the net revenue of the hospitals business. As of March 31, 2025, the consolidated revenue of GHIPL's hospitals business stood at ₹718.5 crore. The agreement shall become effective in respect of the Gleneagles BGS Hospital, Karnataka, upon receipt of acceptance and acknowledgment from certain third party/parties. Fortis Healthcare said the agreement is at arm's length and was validated by an independent financial advisor. This expands Fortis' geographic footprint and increases beds under its management. It enables synergy benefits between both entities. It also provides incremental revenue and improves profitability through direct service fees. GHIPL will bear all third-party and out-of-pocket expenses incurred by Fortis. Use of the 'Fortis' brand will be governed by a separate brand licence agreement. Fortis Healthcare shares were trading 1.09% at ₹817.9 apiece at 12 pm on Wednesday, July 23. The stock has gained 15.3% this year, so far. CNBCTV18