Max Healthcare Institute Ltd (MHIL), one of India’s largest private healthcare providers, announced the deal to acquire Eqova Healthcare Private limited (Eqova), a company with long term exclusive rights to aid development of and provide medical services to a 400 bed hospital to be built on 2.1 acres of land parcel in Patparganj, Delhi, owned by Nirogi Charitable and Medical Research Trust.
The hospital will be located on NH 24 expressway and falls on the metro corridor, ~ 300 metre from IP Extension Metro Line. The site is ~ 800 metre from the existing 402 bed Max Super Speciality Hospital, Patparganj, which has been consistently reporting high level of occupancies (more than 81% during the FY18 – FY 20 period). The hospital shall thus have both revenue and cost synergies with the existing facility. Presently, a 20 bedded hospital is operating at the site.
Under phase 1, 250 beds will be commissioned in H1 FY26 and the hospital will have high end medical programmes such as oncology, organ transplant and offer multi-disciplinary care in the area of cardiac sciences, neurosciences, renal sciences, etc. 150 beds will be operationalised in phase 2 after commissioning of the phase 1. The hospital, once fully operational, shall directly employ ~2,000 people and provide free treatment to ~60,000 patients belonging to the economically weaker section annually in its in-patient and out-patient departments, the statement said.
“This new hospital will allow us to cater to the need for quality healthcare of East Delhi community and fortify our network footprint in NCR in a synergistic manner. It will further enable us to bring high end clinical program and technologies to the region and also help us to continue serving the indigent patient community” said Dr. Abhay Soi, Chairman and Managing Director, MHIL.
The initial acquisition of majority stake is by way of upfront purchase of 26% stake, with an Escrow mechanism set up for additional 34% under call/put options to be exercised linked to achievement of certain milestones. In addition, the parties have agreed to call/put options for the balance stake to be exercised on achievement of defined milestones.
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