India: Narayana Hrudayalaya to acquire NewRise Healthcare for $28m

Multispecialty hospital chain Narayana Hrudayalaya Ltd will acquire multi-speciality hospital NewRise Healthcare Pvt Ltd for Rs 180 crore ($27.8 million), from Delhi-based drug maker Panacea Biotec Ltd, the company said in a stock market disclosure.

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.

Bengaluru-headquartered Narayana Hrudayalaya was founded in 2000 by Devi Prasad Shetty. The hospital operates a chain of multispecialty, tertiary and primary healthcare facilities, and has a chain of 23 hospitals and seven heart centres across the country India. Narayana Hrudayalaya has an overseas hospital also at Cayman Islands with over 5,700 operational beds.

Early this year, the healthcare firm announced to sell its Hyderabad hospital to its partner Chandramma Educational Society. Prior to that in February, Narayana Hrudayalaya bought 26 per cent stake in a subsidiary Narayana Hrudayalaya Surgical Hospital Pvt. Ltd for Rs 302.56 crore ($46.8 million).

Narayana Hrudayalaya’s scrip last traded at Rs 317.65 each, down 0.22 per cent on BSE in a weak Mumbai market on Friday.

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