Max Healthcare Institute Limited has announced its board’s approval to acquire 100% equity stake in Yerawada Properties Private Limited (YPPL) for setting up a super speciality hospital in Pune, Maharashtra. The company plans to build a ~450 bedded hospital on the land owned by YPPL with an investment of up to ₹1,020 Crore. This acquisition will be completed in a phased manner with the first tranche involving acquiring 100% of Class A equity shares.
Acquisition of Yerawada Properties
The board of directors of Max Healthcare Institute Limited have greenlit a share purchase agreement (SPA) to acquire 100% equity stake in Yerawada Properties Private Limited (YPPL), based in Pune, Maharashtra. The acquisition aims to expand Max Healthcare’s presence and infrastructure in the region.
Hospital Project Details
Max Healthcare intends to establish a ~450 bedded super speciality hospital on land owned by YPPL. The total investment for this project is estimated to be up to ₹1,020 Crore, encompassing the YPPL shares acquisition, construction expenses, equipment costs, stamp duty, and registration charges.
Phased Acquisition
The equity stake purchase will occur in stages, concluding upon receiving the Occupancy Certificate for the planned hospital building. Initially, Max Healthcare will acquire 100% of the Class A equity shares, representing 100% of the voting rights and approximately 50.22% of the economic interest in YPPL.
Strategic Rationale
This initiative allows Max Healthcare to expand its footprint in Maharashtra by developing a new hospital in a prime location in Pune. The hospital is intended to cater to the growing demand for quality healthcare services in Pune and its surrounding regions. The project is expected to be completed in approximately 4 years.
Financials and Funding
The ₹1,020 Crore investment will be financed through a mix of internal accruals and term loans, ensuring a balanced approach to funding the project’s various stages, including land acquisition and hospital construction.
Source: BSE