Apollo Hospitals enters Lucknow with acquisition of a 50% stake in Medics International Lifesciences’ 330 bedded super-speciality hospital project

By / 2 years ago / News Update / 207 Comments
Apollo Hospitals enters Lucknow with acquisition of a 50% stake in Medics International Lifesciences’ 330 bedded super-speciality hospital project

Apollo Hospital Enterprise Ltd. (BSE: 508869 / NSE: APOLLOHOSP), India’s first multi-speciality chain of hospitals today announced that the company has acquired a 50% stake in Medics International Lifesciences Ltd. (‘Medics’), a 330 bedded super-speciality hospital in Lucknow. The Apollo Medics Super Speciality Hospital would strengthen Apollo Hospitals’ leadership position in the hospital space as well as enhance its presence in the state of Uttar Pradesh where it already has a strong brand equity. Apollo Medics Super Speciality Hospital is expected to be commissioned by the third quarter of the current financial year. The acquisition of the 50% equity stake is through a primary issuance of shares by Medics for a consideration of Rs.910 million which would be utilised towards hospital commissioning and related expenses. The transaction was facilitated by Advay Capital Advisors as investment bankers.

Medics Super Speciality Hospital,  founded and promoted by Dr. Sushil Gattani, one of the leading cardiologists in Uttar Pradesh; Dr. Mayank Somani, a highly accomplished Senior Physician and Critical care medicine expert; Dr. Kavita Somani, a leading histopathologist in the state, Mr. J. P.Dhoot and other individuals, is located in the heart of Lucknow and is spread over a 3,50,000 sq. feet area. The Apollo Medics Super Speciality Hospital will provide quaternary care with world class infrastructure offering round the clock diagnostic, curative, preventive and rehabilitative care across specialities through Centres of Excellence in Cardiac Sciences, Oncology (Cancer Care), Neuro Sciences, Gastro Sciences, Renal Sciences, Orthopaedics, Obstetrics & Gynaecology, Critical Care and 24X7 Trauma Care. Apollo Hospitals will utilise its expertise to introduce new services and offerings built on its deep domain expertise.

Ms. Suneeta Reddy, Managing Director, Apollo Hospitals Enterprise Ltd. said, “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. We expect to leverage on our proven track record of performance and operational capabilities to drive growth and profitability at Medics and create long term value for the shareholders.”

Lucknow is an important market for healthcare services, but despite the inherent potential, it is estimated that the Lucknow district population of around 5.1 million has a significant shortfall of around 2,000 hospital beds. Dr. Sushil Gattani, Founder & Chairman, Medics Super Speciality Hospital said, “We believe that this strategic partnership with Apollo will add value and strengthen Medics position in the state of Uttar Pradesh. There is a significant opportunity for growth in multi-specialty hospitals, with availability of quality consultants from the many premier educational health institutes like SGPGI. In addition, there is potential to develop Lucknow as a cost effective Medical Value Travel destination, with direct flights to Middle East and South Asia  every day. Lucknow already attracts around 5-8% of its patients from Nepal.”

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