Max acquires Pushpanjali Hospital for Rs 290 cr

Max Healthcare Institute has inked an agreement to acquire a controlling stake of 76 per cent in Pushpanjali Crosslay Hospital for about Rs 290 crore through a combination of fresh investment and acquisition of shares from existing promoters.

According to the agreement, Max has the right of first refusal over the remaining 24 per cent stake as well.

This is in line with Max’s plan for expansion in number of beds across its existing and planned new facilities.

“This is a 340-bed capacity hospital and could be expanded by another 200 beds. We are also looking at adding 750-900 beds in our existing facilities, while a new facility in Greater Noida would have about 300-500 beds,” said Rahul Khosla, chairman, Max Healthcare and managing director, Max India and Max Healthcare. After this acquisition, Max Healthcare’s bed capacity is 3,340. Situated 4km from Max Super Speciality Hospital in Patparganj, Pushpanjali Crosslay is in the East Delhi-Ghaziabad-Noida corridor. Max Healthcare is a joint venture of Max India and Life Healthcare, South Africa, where both have 46 per cent stake each.

Pushpanjali was founded by doctor-turned-entrepreneur Vinay Aggarwal, along with a cooperative of around 250 doctors and 450 nursing staff. It had reported revenue of Rs 143 crore at an EBIDTA margin of 14 per cent in FY2014.

Shares of Max India closed almost two per cent down at Rs 471.45 on BSE on Thursday.