Max Healthcare to pick up 64% stake in Jaypee Healthcare

16 Sep 2024 , 11:25 AM

Max Healthcare plans to acquire a 64% share in Jaypee Healthcare (JHL) for ₹1,660 Crore, with the option to purchase the other 36%. This transaction is part of a strategic partnership with the Lakshdeep Group as Jaypee Healthcare navigates the Corporate Insolvency Resolution Process (CIRP).

Abhay Soi, Max Healthcare’s Chairman and Managing Director, stated that the acquisition improves Max’s foothold in the NCR region. JHL’s inclusion is a significant step towards establishing a powerful presence in the NCR, which is home to 46 million people and serves as a crucial economic hub, according to Soi.

The purchase, which is expected to finalise within 30 days, will give Max Healthcare control of JHL’s 500-bed Noida hospital, as well as two other hospitals in Bulandshahr and Anoopshahr, Uttar Pradesh. As part of the deal, Max will arrange for debt repayment to JHL’s financial creditors. In fiscal year 2023-24, JHL recorded sales of ₹421 Crore and EBITDA of ₹70 Crore.

Over the last year, the stock has risen 47.67%, while the benchmark 30-share index has gained 25.94%. Max Healthcare’s 52-week high is ₹979.8, with a 52-week low of ₹531.05. The stock has a one-year target price of ₹912 and a current PE ratio of 83.74, with an EPS of ₹10.84.

At around 10.41 AM, Max Healthcare was trading 2.26% higher at ₹928.55, against the previous close of ₹908 on NSE. The counter touched an intraday high and low of ₹934.50, and ₹920.05, respectively.

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