Max Healthcare Institute Limited, the Company, had earlier entered into a share purchase agreement (“SPA”), shareholders’ agreement (“SHA”) and other agreements for acquisition of equity stake in Eqova Healthcare Private Limited (“Eqova”) in a phased manner. Subsequently, the Company had acquired 26,000 equity shares having face value of Rs 10 each fully paid up of Eqova representing 26% of paid up equity share capital of Eqova in terms of the provisions of SPA.
The Company has, on April 13, 2023, completed the acquisition of additional 34,000 equity shares having face value of Rs 10 each fully paid up of Eqova representing 34% of paid up equity share capital of Eqova consequent to contractual obligation of the Company to acquire equity shares of Eqova upon exercise of put option by one of the shareholders of Eqova pursuant to option agreement entered into by the Company, Eqova and such shareholder of Eqova on February 10, 2022.
Eqova’s turnover for FY2022 was Rs 60 lakhs. Consideration for the acquisition of 34,000 equity shares of Eqova is Rs 6,886.71 Lakhs.
Eqova has an agreement with Nirogi Charitable and Medical Research Trust (“Society”) in the form of an exclusive and long-term Medical Services Agreement (MSA), under which it has the right to aid development of and provide medical services to a 400 bed hospital to be built on 2.1 acres of Society’s land situated at Patparganj, Delhi.
The MSA is valid for an initial term of 30 (thirty) years from the Signing Date (as defined in the MSA) and shall be extended in accordance with the terms of the MSA. Under phase 1, 250 beds are expected to be commissioned in FY26 and the hospital will have high end medical programmes such as oncology, organ transplant and offer multidisciplinary care in the area of cardiac sciences, neurosciences, renal sciences, etc.
150 beds will be operationalized in phase 2 after commissioning of the phase 1. The Hospital, once fully operational, shall directly employ ~2,000 people and provide free treatment to ~60,000 patients belonging to the economically weaker section annually in its inpatient and out-patient departments. Through this Hospital, the Company will cater to the quality healthcare needs of the East Delhi community.
The Company has right to appoint majority of directors on the Board of Eqova and now holds 60% of the paid up equity share capital of Eqova. Further, the Company and the remaining shareholders of Eqova have certain call and put option for the balance 40% equity stake of Eqova, as per terms of the SHA executed between Eqova, Company and shareholders of Eqova.
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