Max Healthcare Acquires 58% Stake in Kalinga Hospital for ₹300 Crore

Max Healthcare Institute Ltd. has entered into a share purchase agreement to acquire a controlling stake of approximately 58.39% in Kalinga Hospital Ltd. The transaction involves an equity value of around ₹300 Crore, including a control premium. Kalinga Hospital operates a 250-bed multi-specialty facility in Bhubaneswar, Odisha. This acquisition marks Max Healthcare’s entry into the Bhubaneswar market, expanding its presence in Eastern India.

The financial terms of the acquisition include a cash consideration of approximately ₹300 Crore. Max Healthcare will also provide loans up to ₹100 Crore to Kalinga Hospital for construction, renovation, and equipment upgrades. Additionally, a corporate guarantee of $5 Million will be issued to refinance the existing external commercial borrowings of Kalinga Hospital’s current promoter. The acquisition will be financed through external commercial borrowings, with a senior secured term loan of up to ₹300 Crore from Standard Chartered Bank.

Operationally, Kalinga Hospital is a NABH accredited facility offering comprehensive services in neurology, cardiology, orthopedics, gastroenterology, renal sciences, and oncology. The hospital is situated on a 10-acre land parcel in Maitri Vihar, Bhubaneswar, with a built-up area of approximately 260,000 square feet. The facility is equipped with advanced medical technology, including a 128-slice CT scanner, 1.5T MRI, and Cath Lab. The acquisition allows for potential expansion to over 1,000 beds on the same campus.

The timeline for the completion of this acquisition is projected within 4-6 weeks from the execution of the share purchase agreement. The immediate addition of 250 beds to Max Healthcare’s network will enhance its capacity, which currently stands at approximately 5,200 beds. The company plans to undertake revamping and modification of the existing infrastructure to improve efficiency and clinical capabilities.

The parties involved in this transaction include Max Healthcare Institute Ltd. as the acquirer and Kalinga Hospital Ltd. as the target entity. The agreement will result in Kalinga Hospital becoming a subsidiary of Max Healthcare. The transaction does not involve any related party interests from the promoter or group companies of Max Healthcare.

In the context of market relevance, Bhubaneswar is recognized for its developed healthcare ecosystem, with a significant presence of public and private hospitals. The acquisition aligns with Max Healthcare’s strategy to expand its footprint in regions with growing demand for quality healthcare services. The hospital will cater to patients from Odisha and neighboring states, including West Bengal, Jharkhand, and Chhattisgarh.

Max Healthcare Institute Ltd. is one of India’s largest healthcare organizations, operating 20 facilities with a significant presence in North India. The company is committed to clinical excellence and patient care, supported by advanced technology and research. Max Healthcare’s network includes state-of-the-art tertiary and quaternary care hospitals, homecare, and pathology services under the brands Max@Home and Max Lab.