The company will acquire a 58.4% stake in KHL for an equity value of ₹300 crore, including a control premium. This move marks Max Healthcare's entry into the Bhubaneswar market, expanding its footprint in Eastern India.

Kalinga Hospital, operational since 1997, is a 250-bed NABH accredited facility located on a prime 10-acre site in Maitri Vihar, Bhubaneswar. The hospital is equipped with state-of-the-art medical technology, including a 128-slice CT scanner, 1.5T MRI, and Cath Lab, and offers comprehensive services across various specialties such as Neurology, Cardiology, Orthopaedics, Gastroenterology, Renal Sciences, and Oncology.

The acquisition is expected to bolster Max Healthcare's network, providing a significant operational upside and potential for future expansion. The Bhubaneswar healthcare ecosystem is well-developed, with a strong presence of public and private hospitals, making it a preferred destination for patients from Odisha and neighbouring states like West Bengal, Jharkhand, and Chhattisgarh.

In addition to the acquisition, Max Healthcare's board has approved a Senior Secured Term Loan of up to ₹300 crore in the form of External Commercial Borrowings to finance the transaction. The board has also sanctioned loans up to ₹100 crore for KHL's construction, renovation, and equipment costs, along with issuing a corporate guarantee for refinancing the existing promoter's external commercial borrowings of $5 million.

Commenting on the acquisition, Abhay Soi, Chairman and Managing Director of Max Healthcare Institute Ltd., expressed enthusiasm about entering the Bhubaneswar market through this acquisition, highlighting the hospital's prime location and potential for growth.

The transaction is subject to the completion of conditions precedent as outlined in the share purchase agreement.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).