Max Healthcare Institute has seen its shares increase by as much as 4% on 12 November 2024, following the completion of its acquisition of Jaypee Hospital, as reported by MoneyControl.

The acquisition was initially announced in September.

At 10:08 am, the company's shares were trading at Rs1,040.45 ($12.32) on the NSE, having reached a day's high of Rs1,064.80 earlier.

Max Healthcare has acquired a 64% stake in the ailing Jaypee Healthcare at an enterprise value of Rs16.60bn, with an option agreement for the remaining 36%.

This strategic move was facilitated through a partnership with Lakshdeep Group, the promoter of Jaypee Healthcare, which is under the Corporate Insolvency Resolution Process.

As part of the acquisition, Max Healthcare has authority over a 500-bed hospital in Noida and two other hospitals in Bulandshahr and Anoopshahr, Uttar Pradesh.

The company also plans to arrange debt to settle the Jaypee Healthcare financial creditors’ admitted claims.

Max Healthcare Institute chairman and managing director Abhay Soi said: “Adding JHL to our network marks an important milestone in building a strong presence in NCR—a region not only home to 46 million people but also a vital economic hub in India.”

The company's recent quarterly earnings report showed a nearly 2% year-on-year growth in net profit at Rs3.49bn.

Revenue also saw a 22% increase to Rs22.28bn, attributed to increased operational bed days and average revenue per occupied bed, which stood at Rs76,100, up 2% from the previous year.

Earlier in February 2024, Max Healthcare expanded its footprint with the purchase of a land parcel in Lucknow for a new hospital development and the acquisition of Alexis Multi Speciality Hospital for Rs4.12bn.

Alexis Multi Speciality is a Joint Commission International accredited facility with 200 beds and potential for expansion to 340 beds.