Meanwhile, on Thursday it had received an unsolicited binding offer jointly from Sunil Munjal of Hero and Burmans of Dabur to invest Rs 1,250 crore directly into the company through a preferential allotment.
Meanwhile a statement from the Fortis Healthcare said that the proposal is under evaluation by the company.
IHH, in a letter dated April 11 made public by Fortis on Friday, said it was offering to buy Fortis due to the "inability of the statutory auditors of (Fortis) to opine on its financial position as at December 31, 2017 and regulatory investigations that are now underway".
Munjals and Burmans have offered higher of Rs 156 per share or price determined by SEBI's ICDR rules. The proposal, which is subject to certain conditions, includes an immediate investment of 5 billion rupees and 7.5 billion rupees after diligence is completed within three weeks.
IHH, one of Asia's largest healthcare operators, has bid 160 rupees ($2.45) per share for Fortis, topping a 155 rupees per share offer from Fortis's Indian rival Manipal Healthcare Enterprises Private Limited. Intra-day, the stock rose by 4.63 per cent to Rs 154.50.
While the bidders are lining up, the Fortis saga has been on for a while.
They are entering the fray as founders Malvinder Singh and Shivinder Singh were unable to repay loans and lost Fortis shares put up as collateral. Ranjan Pai, chairman, Manipal Education and Medical Group, in an interview to VCCircle had said that given the complexity of the deal structure, the relative valuation has not been properly understood. The two entities said they are concerned about Fortis' future and the company requires funding for its immediate needs as well as to develop its long-term value.
IHH, which wants to work with Fortis on a friendly offer, has asked the board for time to update its due diligence before making a formal bid, the report added.