Max Healthcare Institute Ltd., a prominent healthcare services provider based in New Delhi, has entered into a strategic partnership with Lakshadweep Group, the promoter group of Jaypee Healthcare Limited (JHL), which is currently under the Corporate Insolvency Resolution Process. Under this collaboration, Max Healthcare will acquire a 64% controlling stake in JHL, with an option to purchase the remaining 36% in the future.
The acquisition, valued at ₹1,660 crore, includes JHL’s flagship 500-bed hospital in Noida and two additional facilities located in Bulandshahr and Anoopshahr, Uttar Pradesh. This deal is expected to enhance Max Healthcare’s footprint in the National Capital Region (NCR), a significant economic center with a population of 46 million.
JHL reported a revenue of ₹421 crore and an EBITDA of ₹70 crore for the fiscal year 2023-24. The acquisition aligns with Max Healthcare’s expansion strategy and aims to improve JHL’s operational sustainability. As part of the agreement, Max Healthcare will secure financing to repay JHL’s financial creditors.
Max Healthcare plans to expand the capacity of the Noida facility from 500 to 1,200 beds over the coming years. The acquisition is anticipated to be completed within 30 days, in line with the revival plan approved by the National Company Law Appellate Tribunal (NCLAT), which seeks to ensure JHL’s long-term sustainability and enhance operational efficiency.
Abhay Soi, Chairman and Managing Director of Max Healthcare, highlighted the significance of this acquisition for strengthening the company’s presence in the NCR region. “We are dedicated to improving patient care, expanding access to advanced healthcare services, and building on the legacy of Jaypee Hospitals. Our focus is on meeting the needs of all stakeholders while providing high-quality healthcare services sustainably,” Soi stated.
Summary:
- Max Healthcare will acquire a 64% stake in Jaypee Healthcare Limited (JHL) for ₹1,660 crore, with an option to purchase the remaining 36%.
- The acquisition includes JHL’s main hospital in Noida and two other facilities, enhancing Max Healthcare’s presence in the National Capital Region (NCR).
- Max Healthcare plans to expand the Noida facility’s capacity significantly and will finance the repayment of JHL’s creditors as part of the deal, aiming for completion within 30 days.