Max Healthcare Expands Footprint with Acquisition in Pune for 450-Bed Hospital
Max Healthcare Institute has seen a 1.43% increase in its stock price, reaching Rs 1046.45, following the announcement of its board's approval to acquire 100% equity stake in Yerawada Properties Private Limited (YPPL), located in Pune, Maharashtra.
YPPL is a real estate development company that owns a 1.68-acre parcel of freehold land in Yerawada, a prime locality in the heart of Pune. This land has the potential to accommodate the development of a 450-bed hospital, significantly expanding Max Healthcare's footprint in Maharashtra.
The acquisition of YPPL will facilitate the establishment of a hospital in Yerawada, Pune, which is a strategic move for the company. The purchase of the equity stake will be carried out in a step-up manner, concluding upon receipt of the occupancy certificate for the planned hospital building. In the first tranche, Max Healthcare will acquire 100% of the Class-A equity shares, representing 100% of the voting rights and nearly 50.22% of the economic interest in YPPL.
Further, the company will acquire 100% of the Class-B equity shares in a phased manner over a period of four years. The board of Max Healthcare has also approved the construction of a 450-bed super speciality hospital on the land owned by YPPL, with an aggregate spend of up to Rs 1,020 crore. This includes the cost of acquiring YPPL shares, construction, equipment, stamp duty, registration charges, and other related expenses.
Max Healthcare Institute is one of India's largest healthcare organizations, operating 20 healthcare facilities with nearly 5,200 beds, primarily in North India. In addition to its hospital network, the company also offers homecare and pathology services under the brand names Max@Home and Max Lab, respectively.
The company reported a 59% increase in net profit to Rs 554 crore on a 21% increase in net revenue to Rs 2,580 crore in Q2 FY26, compared to Q2 FY25. This strong financial performance further solidifies Max Healthcare's position in the healthcare sector and underscores its commitment to expanding its healthcare services to more regions in India.
The acquisition of YPPL is a significant step in Max Healthcare's growth strategy, allowing the company to tap into the burgeoning healthcare market in Pune and enhance its service offerings to patients in the region. With this new development, Max Healthcare aims to provide world-class healthcare facilities and services to the people of Pune and the surrounding areas.
