SUMMARY
- Max Healthcare takes a 64% controlling stake in Jaypee Healthcare.
- Max Healthcare aims to expand Jaypee Hospital, Noida, from 500 to 1,200 beds.
- The acquisition is valued at Rs 1,660 crore, with JHL’s FY24 revenue at Rs 421 crore.
Max Healthcare Institute Ltd., a leading healthcare services provider based in New Delhi, has announced a strategic partnership with Lakshdeep Group, the promoter group of Jaypee Healthcare Limited (JHL), which is currently undergoing the Corporate Insolvency Resolution Process.
As part of this collaboration, Max Healthcare will acquire a 64% controlling stake in JHL, with the option to purchase the remaining 36%. The acquisition will include JHL’s flagship 500-bed hospital in Noida, alongside two additional facilities located in Bulandshahr and Anoopshahr, Uttar Prades h.
This deal is valued at an enterprise figure of Rs 1,660 crore and is expected to significantly bolster Max Healthcare’s presence in the National Capital Region (NCR), which is a critical economic hub with a population of 46 million people. Max Healthcare has committed to securing financing to repay JHL’s financial creditors as part of the agreement.
For the fiscal year 2023-24, JHL reported a revenue of Rs 421 crore with an EBITDA of Rs 70 crore. The acquisition is expected to provide a boost to Max Healthcare’s expansion strategy while contributing to the operational sustainability of JHL.
Max Healthcare plans to potentially expand the capacity of the flagship Noida facility from 500 to 1,200 beds over the coming years. The acquisition is expected to be finalized within 30 days, in accordance with the revival plan approved by the National Company Law Appellate Tribunal (NCLAT). This plan aims to ensure the long-term sustainability of JHL’s operations and improve operational efficiency.
Abhay Soi, Chairman and Managing Director of Max Healthcare, emphasized the importance of this acquisition in strengthening the company’s footprint in the NCR region. “We are committed to enhancing patient care, expanding access to quaternary healthcare services, and building upon the legacy of Jaypee Hospitals. Our focus remains on addressing the needs of all stakeholders while delivering high-quality healthcare services in a sustainable manner,” said Soi.
