Shalby stock jumps 6% on acquisition of Healers Hospital

The shares of this leading multi‐specialty hospital chain gained almost 6 percent to an intraday high of ₹243.75 per share after its board approved to acquire a 100% stake in Healers Hospital Private Ltd (HHPL) for ₹104 crore.

At 12:10 p.m., Shalby Ltd. shares were quoting ₹223.70 a share, down 2.82 percent over the previous close price on Wednesday. The company has a market capitalization of ₹2,424 crore on the stock exchange.

On March 12, Shalby’s board approved a strategic investment in Healers Hospital Private Limited (Healers Hospital) to acquire a 100% equity stake in the hospital for consideration of ₹104 crores. The acquisition will be carried out through a secondary acquisition from the existing shareholders of HHPL.

The transaction is expected to be completed within 30 days post-approval. After the acquisition, Healers Hospital Private Limited will become a wholly-owned subsidiary of Shalby Ltd.

This investment is part of Shalby’s ongoing effort to strengthen its asset portfolio following the acquisition of Sanar International Hospital (P K Healthcare Pvt Ltd.) in Gurugram.

Sanar International Hospital is currently operating on leased land held by Healers Hospital. With this acquisition, Shalby has changed its business model from a Leased model to an owned model for its recent acquisition of Sanar International Hospital in Jan 2024.

Shalby Ltd. operates a chain of multi-specialty hospitals across India. The business of the company is to offer tertiary and quaternary healthcare services to patients in various areas of specialization, such as orthopaedics, complex joint replacements, cardiology, neurology, oncology, renal transplantations, etc.

The company is the global leader in knee replacement surgery with a market share of 15% and one of the top Indian hospitals in joint replacement surgery. It currently operates a chain of 11 multispecialty tertiary hospitals and 5 orthopaedic centres under the Shalby Orthopaedics Centre of Excellence (SOCE) across India.

The company has an aggregate bed capacity of over 2,200 hospital beds and has diversified into knee and hip implant manufacturing in the US. Shalby has performed more than 150,000 joint replacement procedures.

The company has witnessed a 7 percent annual growth in revenue, climbing from ₹202 crore in Q3FY23 to ₹216 crore in Q3FY24. Conversely, the net profit has seen a 27 percent increase, rising from ₹15 crore to ₹19 crore. Trade Brains