HCG to Acquire Vizag Cancer Hospital at INR 414 Crore Valuation

user Admin
  • 29th Jun 2024
  • 1275
  • 0
HCG to Acquire Vizag Cancer Hospital at INR 414 Crore Valuation
Never miss any update
Join our WhatsApp Channel

Mumbai:

HCG, India's largest specialty cancer care chain, announced on Friday its agreement to acquire the 196-bed Mahatma Gandhi Cancer Hospital and Research Institute (MGCHRI) in Visakhapatnam. 

DEAL TO ESTABLISH LEADERSHIP POSITION IN THE REGION

Purchase of 51% Stake Now, 34% More in 18 Months 

Deal Valuation and Acquisition Details

The deal values MGCHRI at an enterprise value of INR 414 crore. HCG will initially acquire a 51% stake for INR 207.6 crore, with plans to purchase an additional 34% stake for INR 155 crore over the next 18 months. The remaining stake will be acquired later based on the shareholders' agreement.

Financial Highlights

 Revenue from Operations (FY24): INR 120.2 crore

EBITDA (FY24): INR 42.2 crore HCG stated that this acquisition is set to boost the cancer chain’s annual EBITDA by INR 3 per share and secure a dominant market share in the Vizag region.

Along with MG Hospital's management, HCG aims to optimize capacity and add over 25 additional beds.

Growing Demand for Private Cancer Care in Vizag

Private cancer care services in Visakhapatnam are experiencing significant demand, growing at over 15% annually.

Established in 1986, MGCHRI, led by onco-surgeon Dr. Murali Krishna Voonna, has 196 operational beds and advanced medical infrastructure, including:

  • 2 LINAC (linear accelerators) machines
  • 1 PET CT scanner
  • 1 Robotics Surgery System

Dedicated Bone Marrow Transplant (BMT) unit

HCG’s Network and Reach Headquartered in Bengaluru, HCG is the largest cancer care provider in India, with a network of 21 comprehensive cancer centers across India and Africa.


Related Topics / Tags

Admin

Author

Admin

...


Comments

Add Comment

No comments yet.

Add Your Comment

Relevant Blogs

General
Impact of Navi Mumbai International Airport on Khopoli Real Estate

Impact of Navi Mumbai International Airport on Khopoli Real EstateThe Navi Mumbai International Airport is more than just an airport-it's a game chang

General
Khopoli Real Estate - Growth Drivers of an Emerging Hub

Khopoli is transforming into a real estate destination. Its location, infrastructure, and economic activity create opportunities for buyers and invest

General
Equinox India Secures INR 950 Crore via NCDs to Propel Panvel Realty Projects

Mumbai | Strategic Fundraising for Growth Equinox India Developments (formerly Indiabulls Real Estate) has successfully raised ₹950 crore through n