PVP Ventures Limited acquires a majority stake in Optimus Oncology Pvt. Ltd.

PVP Ventures Ltd., ("PVP") executed binding agreements to acquire 56% stake in Optimus Oncology Pvt Ltd. ("OOPL" / "Company") with a clear roadmap to increase the stake to 76% over the next few years subject to achievement of certain milestones. With this acquisition, PVP has made a significant stride in its earlier announced plans to build a Technology centric global Healthcare Services platform focussing on Illness, Wellness and Care.

The transaction shall be a combination of both primary and secondary stake purchase amounting to an initial outlay of circa INR 55 Crores for an initial shareholding of 56%. The subsequent investments are subject to achievement of certain financial milestones over the next few years.

Established in 2018, OOPL is founded and run by a group of reputed Radiation Oncologists trained at the prestigious Tata Memorial Hospital in Mumbai. The Company collaborates with local hospitals to setup Oncology Centres within these partner hospitals. The clear focus of OOPL is to serve the needs of patients in Tier 2 & Tier 3 cities and towns in India. The growing incidence of cancer and lack of facilities in these areas provide a scalable and sizable opportunity for OOPL.

The company with an EBITDA in excess of INR 10 Crores in the current financial year is poised to deliver an EBITDA of INR 50 Crores in the coming 5 years with the current investment. The company is amongst the larger players in India in Radiation & Medical Oncology in Tier 2 and Tier 3 towns. Current operations of OOPL focus around the state of Maharashtra with existing centres located in Dhule, Latur, Akola and Solapur. With the capital provided by PVP by way of a primary infusion into OOPL, the Company will strengthen its footprint in Maharashtra and also expand into the states of Gujarat and Madhya Pradesh with a view to rapidly growing into becoming a national Oncology player.

Mr. Arjun Ananth, CEO - PVP Ventures Ltd. said, "This transaction represents a key step in our journey in creating a powerful house of brands leveraging technology in Healthcare Services focused on Tier 2 and Tier 3 markets. We welcome Optimus into the PVP fold and look forward to making them a scaled national oncology player in the near future."

Dr. Bhushan Nemade, Founder & CEO of Optimus Oncology Pvt. Ltd. said, "Cancer care access in India is heavily skewed towards urban centres with most centres concentrated in the 10-12 major cities, leaving towns and rural areas underserved. India has only 0.53 radiation therapy machines per million people against a base requirement of 1 machine per million. This translates into an unmet need for over 1000 machines for a population nearing 1.43 billion in India. This results in delayed diagnosis and potentially higher mortality amongst patients. We are happy to partner with the PVP Group who share our common vision for betterment of the health infrastructure in India."

Shares of PVP Ventures Limited was last trading in BSE at Rs. 28.31 as compared to the previous close of Rs. 27.38. The total number of shares traded during the day was 38731 in over 781 trades.

The stock hit an intraday high of Rs. 29.19 and intraday low of 27.00. The net turnover during the day was Rs. 1085881.00.

Source : Equity Bulls

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