Multispecialty hospital chain Narayana Hrudayalaya Ltd said it would buy NewRise Healthcare Private Ltd from Panacea Biotec Ltd for an enterprise value of Rs 180 crore ($27.87 million) including debt, to set up its first hospital in Gurgaon.
The all-cash transaction is intended to consolidate the company’s footprint in the northern region, Bengaluru-based Narayana Hrudayalaya said in a stock-exchange filing.
NewRise is in final stages of completing its new hospital in Gurgaon, which is expected to be commissioned within the next nine months. The hospital will have 230 beds. It will complement Narayana’s oncology-focused Dharamshila Narayana Superspeciality Hospital in eastern Delhi that will be upgraded to a multispecialty tertiary care unit.
“This development is a step forward in the direction towards reinforcing the newly formed Northern cluster. It also echoes our group’s commitment towards developing this region as vibrant as the existing Karnataka and Eastern clusters. We believe our recent ventures in NCR will help us target this key geography more efficiently while accelerating our trajectory to become a true Pan-India healthcare service provider,” said Ashutosh Raghuvanshi, vice-chairman, MD and Group CEO, Narayana Hrudayalaya.
Narayana Hrudayalaya, which was founded in 2000 by Devi Prasad Shetty, has a network of 23 hospitals and seven heart centres across India. It also has a hospital in Cayman Islands. It has over 5,700 operational beds across all its centres with a potential to reach a capacity of over 6,900 beds.
Meanwhile, while the company has been buying assets to expand its presence, it last year sold its Hyderabad-based hospital Malla Reddy Narayana Multispecialty Hospital to partner Chandramma Educational Society.
The company had indicated that it would be open to more such sales in the future.