Max Healthcare Institute's shares jumped nearly 3 percent after the company announced its plan to acquire 100 percent stake in Pune's Yerawada Properties to build a super speciality hospital in Pune. This move is expected to expand Max Healthcare's footprint in Maharashtra and cater to the growing demand for quality healthcare services in the region.
The company's board has approved the proposal to enter into a share purchase agreement for the acquisition of 100 percent equity stake in Yerawada Properties Private Limited (YPPL), Pune, Maharashtra. The total cost of acquisition will be approximately Rs 200 crore, carried out in a step-up manner.
The acquisition is expected to be completed within 4 years, with the purchase of equity stake concluding upon receipt of the Occupancy Certificate for the hospital building planned to be constructed on the said land.
Max Healthcare's board has also approved the plan to spend up to Rs 1,020 crore to set up a super speciality hospital with 450-bed capacity on the land owned by Yerawada Properties. This will include the cost to acquire Yerawada's shares, construction, equipment cost, stamp duty, registration charges, and more.
The hospital will cater to the healthcare needs of the population living in Pune and surrounding regions, bringing advanced medical care closer to patients in the region.
Max Healthcare Chairman and Managing Director Abhay Soi said, Pune is one of India's fastest-growing urban centers with a strong economic base and rapidly expanding middle-class population. There is a growing need for a high-end super speciality hospital equipped with state-of-the-art technology that Max Healthcare is renowned for.
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