Apollo Hospitals Enterprise Ltd has acquired a 50 per cent stake in Medics International Lifesciences Ltd, a 330-bed super-speciality hospital in Lucknow, for ₹91 crore.
The acquisition is through a primary issuance of shares by Medics for ₹91 crore to be utilised for hospital commissioning and related expenses, according to a statement.
The 3.50 lakh sq ft hospital will now be called Apollo Medics Super Speciality Hospital and will be commissioned by the third quarter of the current financial year.
“In order to strengthen Apollo’s position in the UP region, Apollo was on the lookout for acquisitions to grow inorganically and considers the acquisition as the right choice given the promoters background and expertise in healthcare services in Lucknow,” said Suneeta Reddy, Managing Director, Apollo Hospitals Enterprise Ltd.
It is estimated that the Lucknow district population of around 5.1 million has a significant shortfall of around 2,000 hospital beds.
“We believe that this strategic partnership with Apollo will add value and strengthen Medics’ position in Uttar Pradesh. There is a significant opportunity for growth in multispecialty hospitals, with the availability of quality consultants from the many premier educational health institutes,” said Dr Sushil Gattani, Founder & Chairman, Medics Super Speciality Hospital.
“Also, there is potential to develop Lucknow as a cost-effective medical value travel destination, with direct flights to the Middle East and South Asia every day. Lucknow already attracts around 5-8 per cent of its patients from Nepal,” he said.