Max Healthcare Institute Ltd approves fund for Phase-1 expansion at BNH

The Board of Directors of Max Healthcare Institute Limited at its meeting held today i.e. on December 15, 2022 have accorded approval for funding (in one or more tranches) of wholly owned subsidiary i.e. Max Hospitals and Allied Services Limited ("MHASL") (previously called as Radiant Life Care Mumbai Private Limited) by way of loan or deposit or investment in its securities etc. up to INR 300 Crore to partly finance the cost of Phase-1 expansion of bed capacity at Dr. Balabhai Nanavati Hospital, a managed healthcare facility ("BNH").

Further, the Board has also accorded its approval for issuance of sponsor's undertaking to the lending Bank(s) or FI's to BNH to affirm that Max Healthcare Institute Limited (M) will continue to hold 100% stake in MHASL and meet the shortfall arising due to cost and time overruns for the Project.

The said Phase-1 expansion plan will add 329 beds to BNH and will further increase the total bed capacity of BNH to 660 beds.

The Company has already purchased two parcels of land admeasuring ~ 5.26 acres and ~ 6.11 acres located in Gurugram (Haryana) at Sector 56 and Sector 53 respectively, pursuant to e-auction of these plots by Haryana Shehri Vikas Pradhikaran ("HSVP"). The allotment of land parcel of 6.11 acres at Sector 53 Gurugram has been cancelled by HSVP on the grounds that a part of the land (measuring 2.58 acre) has not been transferred to it by the builder in compliance with conditions of license granted to such builder earlier. The facts came to light on December 14, 2022 during disposal of the writ petition filed by the Company at Hon'ble Punjab and Haryana High Court against HSVP for issuing directions to execute and register the conveyance deed. The Company is taking appropriate legal advice on the matter. Accordingly, the details submitted by the Company pursuant to September 9, 2015 circular on October 4, 2021 stands modified, to that effect.

Shares of Max Healthcare Institute Limited was last trading in BSE at Rs. 432.20 as compared to the previous close of Rs. 429.20. The total number of shares traded during the day was 32221 in over 1484 trades.

The stock hit an intraday high of Rs. 434.55 and intraday low of 428.45. The net turnover during the day was Rs. 13880641.00.

Source : Equity Bulls

Keywords

MaxHealthcareInstitute INE027H01010 HealthcareFacilities FundingApproval Phase1 BedCapacity BNH