Shares of Fortis Healthcare Ltd gained more than 1%, hitting a new 52-week high of Rs 822.20 on 23 July after the company announced the signing of an operation and management (O&M) services agreement with Gleneagles Healthcare India (GHIPL).

The arrangement applies to five hospitals and one clinic owned by GHIPL in India. GHIPL is a linked party because it is a subsidiary of IHH, the parent company of Fortis’ promoter.

Fortis will earn a monthly service fee of 3% of the hospital’s net revenue.

As of 31 March 2025, GHIPL’s hospitals business had a combined revenue of Rs 718.5 crore. The deal takes effect for Gleneagles BGS Hospital in Karnataka.

Fortis Healthcare stated that the deal is at arm’s length and was approved by an independent financial advisor.

This agreement will broaden Fortis’ regional footprint and add beds to its management. It allows for synergistic effects between the two entities. It also generates additional revenue and increases profitability via direct service fees.

GHIPL will cover all third-party and out-of-pocket costs paid by Fortis. A separate brand licensing agreement will govern the use of the ‘Fortis’ brand.

At 12:51 pm, the shares of Fortis Healthcare were trading 1.09% higher at Rs 817.95 on NSE. 

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