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Fortis Healthcare subsidiary merger approved by NCLT, effective date April 1, 2022
Fortis Healthcare Limited
January 16, 2026, 01:15 PM
Fortis Healthcare's composite merger scheme involving four wholly-owned subsidiaries has been approved by NCLT on January 5 and January 16, 2026. The appointed date for the scheme is April 1, 2022. The merger aims for operational efficiencies and cost rationalization through simplification of management structure.
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Fortis Healthcare Limited announced that the composite scheme of merger by absorption between its wholly-owned subsidiaries, Fortis Emergency Services Limited (FESL), Fortis Cancer Care Limited (FCCL), Fortis Health Management (East) Limited (FHMEL), and Birdie & Birdie Realtors Private Limited (B&B), with Fortis Hospitals Limited (FHsL), has received approval from the Hon'ble NCLT, New Delhi on January 5, 2026, and the Hon'ble NCLT, Chandigarh on January 16, 2026.
The appointed date for this Scheme of Arrangement is April 01, 2022. The merger will become effective upon the filing of the certified copies of the orders from both NCLTs with the jurisdictional Registrar of Companies.
The merger aims to rationalize operational efficiencies, reduce administrative and managerial overheads, and simplify management structure and financial reporting. The transaction involves wholly-owned subsidiaries, thus no cash consideration or share exchange will occur. The paid-up capital of FESL, FCCL, FHMEL, and B&B as of March 31, 2025, were ₹0.50 million (₹0.05 crore) each for the first three and ₹0.10 million (₹0.01 crore) for B&B. FHsL reported a turnover of ₹12,824.21 million (₹1,282.42 crore) in revenue from operations as of March 31, 2025. Since these are wholly-owned subsidiaries, the transaction does not fall under related party transactions requiring arm's length considerations as per SEBI regulations.
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