Max Healthcare gains on hiking stake in subsidiary

Max Healthcare Institute rose 1.93% to Rs 205.85 after the company said it acquired 42.8% equity stake in Saket City Hospitals (SCHL) from Kayak Investments Holding.

Before the transaction, Max Healthcare Institute held 57.2% and Kayak Investments Holding held the remaining 42.8% stake in Saket City Hospitals.Kayak held 51.94% stake in Max Healthcare as on 31 December 2020.

Max Healthcare Institute purchased 1.26 crore equity shares, representing 42.8% of the equity share capital of SCHL from Kayak. Following the transaction, SCHL has become a wholly-owned subsidiary of the company with effect from 15 March 2021. The consideration for the purchase of purchased shares is the INR equivalent to $64,246,702.

SCHL is engaged in the business of providing healthcare services in India, including sale of medicines in the course of delivery of healthcare services by way of Business to Business (B2B), construction services, supply, erecting and installation of equipment and other related services. SCHL is also in the business of purchasing, taking on lease, license, or otherwise acquiring, operating or administering establishments of medical services. SCHL reported a turnover of Rs 25.62 crore in the year ended on 31 March 2020.

Max Healthcare Institute (MHIL) provides healthcare services. The company has major concentration in North India consisting of a network of 16 healthcare facilities.

The hospital chain operator reported a consolidated net profit of Rs 90.36 crore in Q3 FY21 as compared to a net loss of Rs 1.80 crore in Q3 FY20. Net sales during the quarter increased by 197.9% YoY to Rs 795.60 crore. Business Standard