Max Healthcare Institute to acquire Eqova Healthcare

11 Feb 2022 , 09:24 AM

Max Healthcare Institute today announced the deal to acquire Eqova Healthcare (Eqova), a company with long term exclusive rights to aid development of and provide medical services to a 400 bed hospital to be built on 2.1 acres of land parcel in Patparganj, Delhi, owned by Nirogi Charitable and Medical Research Trust.

The hospital will be located on NH 24 expressway and falls on the metro corridor, ~ 300 metre from IP Extension Metro Line. The site is ~ 800 metre from the existing 402 bed Max Super Speciality Hospital, Patparganj, which has been consistently reporting high level of occupancies (more than 81% during the FY18 – FY 20 period). The hospital shall thus have both revenue and cost synergies with the existing facility. Presently, a 20 bedded hospital is operating at the site.

Under phase 1, 250 beds will be commissioned in H1 FY26 and the hospital will have high end medical programmes such as oncology, organ transplant and offer multi-disciplinary care in the area of cardiac sciences, neurosciences, renal sciences, etc. 150 beds will be operationalised in phase 2 after commissioning of the phase 1. The hospital, once fully operational, shall directly employ ~2,000 people and provide free treatment to ~60,000 patients belonging to the economically weaker section annually in its in-patient and out-patient departments.

The initial acquisition of majority stake is by way of upfront purchase of 26% stake, with an Escrow mechanism set up for additional 34% under call/put options to be exercised linked to achievement of certain milestones. In addition, the parties have agreed to call/put options for the balance stake to be exercised on achievement of defined milestones.

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