Max Healthcare Institute Ltd. (MHIL) on Tuesday said it will acquire a 58.4% controlling stake in Kalinga Hospital Ltd. (KHL) from Hospital Corporation of Orissa Inc for a total consideration of ₹300 crore.
The company will enter into a share purchase agreement for the transaction. In addition, MHIL’s Board has approved extending loans of up to ₹100 crore to KHL towards construction, renovation, upgradation and equipment costs.
Eastern foray
The acquisition marks MHIL’s entry into Bhubaneswar, expanding its footprint beyond its stronghold in North India. The company currently operates 20 healthcare facilities with a combined capacity of about 5,200 beds.
Operating since 1997, Kalinga Hospital is a 250-bed NABH-accredited facility located on a 10-acre campus in a prime area of Bhubaneswar, with long-term potential to scale up to over 1,000 beds.
Capacity and ecosystem
Spread over 2.6 lakh sq. ft., the hospital provides multidisciplinary care across key specialties including neurology, cardiology, orthopaedics, renal sciences, gastroenterology and oncology. It is supported by diagnostic infrastructure and a catheterisation laboratory.
Bhubaneswar has emerged as a healthcare hub with a strong ecosystem of public and private hospitals and medical colleges, attracting patients from Odisha as well as neighbouring States such as West Bengal, Jharkhand and Chhattisgarh.
Management comment
Max Healthcare Institute, Chairman and Managing Director, Abhay Soi: “Happy to announce our foray into Bhubaneswar, an extremely attractive market, through the acquisition of a very well located and reputable hospital with significant operational upside and brownfield potential. Such prime opportunities are extremely rare. This acquisition allows us to strengthen our footprint and enables us to extend high quality healthcare services to a fast-growing region.”