Narayana Hrudayalaya acquires orthopaedic, trauma hospitalNH - 1173 Change: -31.10 (-2.58 %)
News: Narayana has signed a business transfer agreement with Shiva and Shiva Orthopaedic Hospital to acquire its orthopedic and trauma hospital with around 100 operational beds at Narayana Health city, Bengaluru for an aggregate cash consideration of Rs 200 crore. The unit has generated operational revenues of over Rs 49 crore in FY22 and Rs 18 crore for the four month's period ending July, 2022. Narayana Hrudayalaya has also signed an agreement with Shiva and Shiva Orthopaedic Hospital and its promoters to subscribe to the optionally convertible debentures (OCDs) of the company amounting to Rs 80 crore.
View: The acquisition will enable Narayana to foray into the trauma and orthopaedic specialty within the Narayana Health City campus housing two flagship hospitals and further reinforces Narayana focus on multispecialty care, augmenting core Bangalore region to derive synergies from existing operations. We believe the company is focused on expansion in key markets of Bangalore (Brownfield) and Calcutta (Greenfield) on the back of capex guidance of ~ Rs 1000 crore in FY23 (inclusive of Cayman).