Fortis Says It Is a ‘Complete Stranger’ to the Daiichi Dispute as the Supreme Court Clears a Forensic Audit
- September 28, 2026
- Posted by: Neeraj Pandey
- Category: News
Fortis at Rs 821, down 1.69%. Supreme Court cleared the audit on 25 Sep. RSI 22.3, deeply oversold. Market cap Rs 63,047 crore. P/E 58.9 vs industry 67.7.
Quick Answer
The Fortis Healthcare forensic audit was cleared on 25 September 2026 when the Supreme Court declined to interfere with the Delhi High Court’s 31 August order, while stating that the High Court’s observations against the company were only tentative. Fortis says it was a complete stranger to the Daiichi Sankyo dispute with the Singh brothers, was never party to the arbitration and has had no liability, penalty or fine imposed on it. The shares fell 1.69 percent to Rs 821 on Monday, a mild reaction that suggests investors are waiting for the audit’s scope and findings before pricing in any direct liability.
Fortis Healthcare said in a disclosure to the stock exchanges, reported on 27 September, that it had no role in the alleged dissipation of its former promoters’ shareholding, and that it was confident an independent audit would confirm this. The disclosure followed a Supreme Court order two days earlier that disposed of the company’s special leave petition against the Delhi High Court’s direction for a forensic audit.
The audit is linked to Daiichi Sankyo’s efforts to enforce a 2016 arbitral award against Malvinder and Shivinder Singh, the former promoters of both Ranbaxy Laboratories and Fortis. The stock opened lower, and at Rs 821 it was down Rs 14.10 on the day.
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What the Supreme Court Decided in the Fortis Healthcare Forensic Audit Case
On 25 September, the Supreme Court declined to set aside the Delhi High Court’s 31 August order directing a forensic audit of Fortis in the matter of Daiichi Sankyo Company Limited versus Malvinder Mohan Singh and others. The court said the audit must be conducted independently and without being influenced by the High Court’s observations.
It also clarified that those observations, including passages criticising the company, were tentative and made only for the purpose of making out a case for an audit. The bench questioned whether Fortis management could have been unaware of the status quo orders that covered the Singh brothers’ shareholding, which is the point Daiichi’s counsel pressed in opposing the petition.
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What Fortis Says About the Fortis Healthcare Forensic Audit
Fortis has made five points in its disclosure. It says it was a complete stranger to the underlying dispute, had no role in the alleged dissipation of the promoters’ shareholding, was never a party to the arbitration proceedings, is neither a judgment debtor nor a garnishee in respect of Daiichi’s decree, and has had no liability, penalty or fine imposed on it by the High Court.
The company added that it is confident an independent forensic audit will attest to these facts. That position is consistent with the Supreme Court’s clarification, but it does not remove the risk that the audit examines transactions the company was involved in.
Background: How the Dispute Reached Fortis
Daiichi Sankyo bought a controlling stake in Ranbaxy from the Singh brothers in 2008 and later alleged that information was concealed during the sale. A Singapore arbitration tribunal ruled in its favour in 2016, and the award is reported at about Rs 3,500 crore, which it is now trying to enforce.
Enforcement widened to transactions involving the brothers’ Fortis shares, which Daiichi alleges were dissipated despite assurances given during the proceedings. In September 2022, the Supreme Court had ordered a forensic audit of Fortis’s share sale to IHH Healthcare, and the stock fell as much as 18 percent intraday on that day. The current one-day fall of 1.69 percent is far milder, which suggests the market sees limited direct exposure for now.
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Fortis Healthcare Share Price Levels and Valuation
| Metric | Value |
|---|---|
| Price at time of update | Rs 821.00, down Rs 14.10 (1.69%) |
| Market capitalisation | Rs 63,047 crore |
| P/E ratio | 58.89 vs industry 67.71 |
| Return on equity | 10.53% |
| Debt-to-equity | 0.35 |
| RSI (14-day) | 22.3 |
| SuperTrend (bearish) resistance | Rs 895.5 |
| 20-day average | Rs 891.6 |
An RSI of 22.3 places the stock deep in oversold territory, and the price is about 7 percent below its 20-day average, while the MACD line of minus 17.4 sits below its signal line. Oversold readings can persist in a downtrend, but they also mean that much of the negative news has already been reflected in the price.
The valuation is at a discount to the hospital industry at 58.9 times earnings against 67.7, though a premium multiple for the sector already assumes stable operations, which is the assumption an adverse audit finding would challenge.
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What Could Change From Here
- Appointment and scope: who conducts the audit and which transactions it covers will decide how close it gets to the company’s own dealings.
- Timeline: a lengthy audit keeps uncertainty alive, and the stock may trade with a discount until findings are out.
- Findings: an audit that confirms the company’s position would remove an overhang, while adverse findings could lead to further legal steps.
- Company disclosures: any exchange filing on legal proceedings in the matter will be the primary source of new information.
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Conclusion
The Fortis Healthcare forensic audit will go ahead after the Supreme Court’s order, but the court has also limited the weight of the High Court’s critical observations, and the company says it has no liability in the underlying case. The stock’s mild reaction shows that investors are waiting for the audit’s scope and findings, and until then the risk is about uncertainty rather than proven exposure. Track the company’s filings and its price levels on the Univest Screener.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data independently before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
What did the Supreme Court decide about the Fortis Healthcare forensic audit?
Ans. On 25 September 2026 the Supreme Court declined to interfere with the Delhi High Court’s 31 August order for a forensic audit, and said the audit must be independent of the High Court’s tentative observations.
What is Fortis Healthcare’s position in the Daiichi dispute?
Ans. Fortis says it was a complete stranger to the dispute, was never a party to the arbitration, is neither a judgment debtor nor a garnishee, and has had no liability, penalty or fine imposed on it.
Why is Daiichi Sankyo behind the Fortis Healthcare forensic audit?
Ans. Daiichi is trying to enforce a 2016 arbitral award against former promoters Malvinder and Shivinder Singh, and the enforcement widened to transactions involving the Singh brothers’ shares in Fortis.
How did the Fortis share price react to the Fortis Healthcare forensic audit order?
Ans. The shares were quoted at Rs 821, down Rs 14.10 or 1.69 percent, a mild move compared with the 18 percent intraday fall seen in September 2022 on an earlier audit order.
Is Fortis Healthcare oversold?
Ans. The 14-day RSI is about 22.3, which is below 30 and is read as oversold, and the price is about 7 percent below its 20-day average.
What is Fortis Healthcare’s valuation?
Ans. Fortis trades at 58.89 times earnings against an industry multiple of 67.71, with return on equity of 10.53 percent and debt-to-equity of 0.35.
What should investors watch next in the Fortis Healthcare forensic audit?
Ans. Investors should watch who is appointed to conduct the audit, the transactions it covers, its timeline and any exchange filings from Fortis on the matter.
