New Delhi, April 8 -- Max Healthcare Institute Ltd is foraying into eastern India by acquiring an Odisha hospital, expanding beyond the northern part of the country, where it has a significant presence.
The Mumbai-listed hospital chain, one of the country's largest private corporate healthcare operators, counts Singapore sovereign wealth fund GIC as an investor. Previously KKR was invested in it until the private-equity giant's exit in 2018.
Max Healthcare has now agreed to buy a controlling stake in Kalinga Hospital Ltd from its US-based holding company Hospital Corporation of Orissa, Inc, according to a stock exchange filing on Wednesday.
Max will acquire 58.4% stake in the Bhubaneswar-based hospital for an equity value of Rs 300 crore (around $32.4 million), which includes a control premium, according to the stock exchange filing. To this end, Max is borrowing up to Rs 300 crore through a senior secured term loan in the form of the external commercial borrowings (ECB). Max intends to revamp the hospital facility. The transaction is expected to be executed in four to six weeks.
The deal will help Max Healthcare enter Odisha and cater to the surrounding regions near Bhubaneswar, expanding beyond its presence in Delhi NCR, Punjab, Uttarakhand, Maharashtra and Uttar Pradesh, while also adding revenue and profitability. It will also increase its bed strength from its existing capacity of nearly 5,200 beds as of December 31, 2025.
"Happy to announce our foray into Bhubaneswar, an extremely attractive market, through the acquisition of a very well located and reputable hospital with significant operational upside and brownfield potential," said Abhay Soi, chairman and managing director, Max Healthcare.
The acquisition comes amid a growing number of private hospital operators and private equity investors entering tier 2 and tier 3 cities in India. In December 2023, Max Healthcare had announced the buying of a 550-bed hospital in Lucknow. With a growing middle class and a private/public healthcare ecosystem, Bhubaneswar is experiencing a surge in demand for quality healthcare services, and Max is looking to expand its footprint in East India.
Kalinga operates a 250-bed hospital, built on roughly 10-acre land parcel in Bhubaneswar, and spread over around 2,60,000 square feet. The hospital offers multispecialty care across major disciplines, including neurology, cardiology, orthopaedics, gastroenterology, renal sciences and oncology.
As of FY25, Kalinga's revenue increased to Rs 135.63 crore from Rs 105.65 crore the year before, according to the stock exchange filing.
Max Healthcare operates 20 healthcare facilities, with a significant presence in North India. The company, including its subsidiaries, operates hospitals and medical centres including state-of-the-art tertiary and quaternary care hospitals located at Saket (three hospitals), Patparganj, Vaishali, Rajendra Place, Dwarka, Noida and Shalimar Bagh in Delhi NCR, and one each in Lucknow, Mumbai, Nagpur, Mohali, Bathinda, Dehradun, secondary care hospitals in Gurgaon and medical centres at Noida, Lajpat Nagar and Panchsheel Park in Delhi NCR, and one in Mohali, Punjab.
Published by HT Digital Content Services with permission from VC Circle.