Max Healthcare Institute Ltd., a New Delhi-based healthcare services provider, recently announced a strategic collaboration agreement with Lakshdeep Group, the promoter of Jaypee Healthcare Limited, which is currently undergoing corporate insolvency proceedings.

The company stated that the acquisition will grant it a controlling stake in Jaypee Healthcare Limited, including its flagship asset, the 500-bed Jaypee Hospital in Noida.

The agreement said,Max Healthcare will also provide financing to repay the financial creditors of JHL as part of the agreement.

The company is acquiring a 64% stake in Jaypee Healthcare Limited (JHL) with an option to purchase the remaining 36% at an enterprise value of 1,660 crore.

This acquisition will provide Max Healthcare with a controlling interest in the 500-bed Jaypee Hospital in Noida, as well as two additional hospitals in Bulandshahr and Anoopshahr, Uttar Pradesh. For the year 2023-24, JHL reported revenue of 421 crore and EBITDA of 70 crore.

The chairman and Managing Director, Max Healthcare Institute Ltd, Abhay Soi mentioned, "Integrating Jaypee Healthcare Ltd. into our network is a significant milestone in our effort to establish a strong presence in NCR—a region with 46 million residents that is crucial to India's economic landscape. We look forward to building on the legacy of Jaypee Hospitals and utilizing our combined expertise to improve patient care and broaden access to advanced healthcare services."

He also added that, it remains focused on developing a comprehensive strategy that addresses the needs of all stakeholders while prioritizing the delivery of quality healthcare services in a sustainable manner. Additionally, it plans to potentially expand the flagship Noida facility to 1,200 beds over the next few years.

According to the report the acquisition deal would be finalized in 30 days aligned with the revival plan approved by the National Company Law Appellate Tribunal (NCLAT). The plan is designed to offer sustainability to the operations of Jaypee Hospitals through appropriate measures to improve operational efficiency while building confidence among various stakeholders.