Yatharth Hospital picks up 60% stake in MGS Infotech

31 Oct 2024 , 12:51 PM

On Wednesday (October 30), Yatharth Hospital and Trauma Care Services Ltd’s board approved the acquisition of a 60% ownership investment in MGS Infotech Research and Solutions Private Ltd for ₹91.2 Crore, with an enterprise value of ₹152 Crore.

MGS Infotech owns a 400-bed hospital project in Faridabad, Haryana, which is projected to be operational within 6 to 10 months of acquisition.

The strategic purchase intends to increase Yatharth Hospital’s presence in the Delhi-NCR region, hence increasing its regional footprint. The hospital, built on a 2-acre area, is outfitted with cutting-edge medical equipment to provide super-specialty care to a vast population base.

“On October 30, 2024, the company’s board of directors approved a transaction with MGS Infotech Research and Solutions Private Limited (Target Company) and its shareholders to acquire a 60% equity stake in the company for ₹152 Crore,” said the company in a stock exchange filing.

MGS Infotech, founded in September 2004, has an authorised share capital of ₹80 Crore and a paid-up capital of ₹78.47 Crore. The transaction is expected to finalise in December 2024 and does not require any additional regulatory approvals.

At around 12.39 PM, Yatharth Hospital was trading flat at ₹670.35, against the previous close of ₹671 on NSE. The counter touched an intraday high and low of ₹688, and ₹667, respectively.

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