Max Healthcare Expands in Pune with Major Land Acquisition for New Hospital
Max Healthcare Institute has seen a significant rise in its stock, advancing 1.43% to Rs 1046.45, following the announcement of a major acquisition. The company's board has approved the acquisition of 100% equity stake in Yerawada Properties Private Limited (YPPL), located in Pune, Maharashtra.
YPPL is a real estate development firm that owns a 1.68-acre parcel of freehold land in Yerawada, a prime locality in the heart of Pune. This strategic location is ideal for the development of a 450-bed hospital, which is part of Max Healthcare's expansion plans.
The acquisition of YPPL will significantly expand Max Healthcare's footprint in Maharashtra. The company aims to set up a hospital in Yerawada, leveraging the prime location to provide high-quality healthcare services to the local community.
The purchase of the equity stake will be carried out in a step-up manner, concluding upon the 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. Additionally, 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 investment includes the cost of acquiring YPPL shares, construction, equipment, stamp duty, and registration charges.
Max Healthcare Institute is one of India's largest healthcare organizations, operating 20 healthcare facilities with nearly 5,200 beds, primarily in North India. The company's portfolio also includes homecare and pathology businesses under the brand names Max@Home and Max Lab, respectively.
In the second quarter of FY26, Max Healthcare reported a 59% increase in net profit to Rs 554 crore, driven by a 21% increase in net revenue to Rs 2,580 crore compared to the same period in FY25. This strong financial performance underscores the company's commitment to growth and expansion in the healthcare sector.
The acquisition of YPPL and the planned hospital in Pune represent a significant milestone for Max Healthcare, further solidifying its position as a leading healthcare provider in India. The company's strategic investments and expansion plans are expected to enhance its service offerings and reach, benefiting both patients and investors alike.
