The acquisition, to be executed through a share purchase agreement, will give Max Healthcare control of the 250-bed multi-speciality Kalinga Hospital, which has been operational since 1997.
In an exchange filing on Wednesday, April 8, the company said the deal will strengthen its footprint in eastern India and add immediate capacity to its network, as the hospital is already operational.
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Kalinga Hospital, located in Maitri Vihar, Bhubaneswar, is spread over a 10-acre land parcel with a built-up area of about 2.6 lakh sq ft, and offers services across key specialities including cardiology, neurology, oncology, orthopaedics and renal sciences.
Max Healthcare’s board has also approved loans of up to ₹100 crore to the hospital for renovation, upgradation and expansion, along with issuance of a corporate guarantee to refinance existing borrowings.
The acquisition will be funded through external commercial borrowings of up to ₹300 crore, the company said.
Chairman and Managing Director Abhay Soi said the deal provides an opportunity to enter an “extremely attractive market” with a well-established hospital that offers significant operational upside and expansion potential.
The transaction is expected to be completed within 4–6 weeks, subject to the fulfilment of customary conditions.
Shares of Max Healthcare were trading 945.70 as of 1.05 pm. The stock has fallen 17% over the last six months.
