Max Healthcare secures 64% stake in Jaypee Healthcare in ₹1,660 crore deal, strengthening NCR presence

Max Healthcare is set to acquire a 64% stake in Jaypee Healthcare (JHL) at an enterprise value of ₹1,660 crore, with an option to purchase the remaining 36%. This acquisition is part of a strategic agreement with Lakshdeep Group, as Jaypee Healthcare navigates the Corporate Insolvency Resolution Process (CIRP).

Max Healthcare's Chairman and Managing Director, Abhay Soi, emphasized that the acquisition strengthens Max’s presence in the NCR region. "The inclusion of JHL is a key milestone in building a formidable presence in NCR, home to 46 million people and a vital economic hub," Soi noted.

Expected to close within 30 days, the deal will give Max Healthcare control of JHL’s 500-bed hospital in Noida, along with two other hospitals in Bulandshahr and Anoopshahr, Uttar Pradesh. As part of the agreement, Max will also arrange debt to repay the financial creditors of JHL. For the fiscal year 2023-24, JHL reported a revenue of ₹421 crore and an EBITDA of ₹70 crore.

Shares of Max Healthcare Institute Ltd. traded 0.44% higher at ₹916.65 as of 1:58 PM (IST) on Friday, having closed at ₹912.6 in the previous session. The Sensex was trading 33.43 points lower at 82,929.28 around the same time. However, Max Healthcare’s stock closed at ₹908, down 0.64% by the end of the day.

The stock has climbed 47.67% over the past year, compared to a 25.94% gain in the benchmark 30-share index. Max Healthcare's 52-week high stands at ₹979.8, with a 52-week low of ₹531.05. The scrip has a one-year target price of ₹912 and currently holds a PE ratio of 83.74 with an EPS of 10.84.