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Yatharth Hospital Acquires 60% Stake in MGS Infotech

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Synopsis:

Yatharth Hospital acquires a 60% stake in MGS Infotech for ₹91.2 crore, securing a 400-bed super-speciality project in Faridabad, Haryana, slated to open in 6–10 months.

Yatharth Hospital news today

Yatharth Hospital and Trauma Care Services Ltd recently announced its acquisition of a 60% equity stake in MGS Infotech Research and Solutions Private Ltd. Valued at ₹91.2 crore, this strategic move positions Yatharth Hospital to broaden its footprint in the healthcare industry across the Delhi-NCR region. The acquisition, reflecting an enterprise value of ₹152 crore, enables Yatharth to harness new opportunities in providing specialised healthcare services.

Details of the MGS Infotech acquisition

MGS Infotech, established in 2004, owns a 400-bed hospital project situated in Faridabad, Haryana, strategically located to cater to a significant population base in the Delhi-NCR region. The upcoming hospital spread across 2 acres, is set to be operational within 6 to 10 months of this acquisition. With an authorised share capital of ₹80 crore and a paid-up capital of ₹78.47 crore, MGS Infotech represents a robust addition to Yatharth’s healthcare offerings.

YATHARTH HOSP & TRA C S L

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Updated - 31 October 2024
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Projected benefits for Yatharth’s regional presence

Yatharth Hospital aims to reinforce its presence in the competitive Delhi-NCR healthcare market by securing a majority stake in MGS Infotech. The acquisition aligns with the company’s strategy to provide super-speciality medical services to a wider audience. The hospital will feature state-of-the-art medical equipment, allowing Yatharth to enhance patient care services with advanced technology and expertise. Expanding into Faridabad not only diversifies Yatharth’s service network but also strengthens its brand as a key healthcare provider.

Timeline and regulatory process

This acquisition, approved by Yatharth Hospital’s board on 30 October 2024, is expected to close by December 2024. Notably, the transaction does not require additional regulatory approvals, enabling a smoother transition and faster operational integration. The anticipated timeline ensures that Yatharth Hospital will begin offering healthcare services in the new Faridabad facility by mid-2025, thus supporting the company’s growth and competitive position.

Impact on MGS Infotech share price

As Yatharth Hospital incorporates MGS Infotech into its healthcare portfolio, the MGS Infotech share price is likely to reflect investor sentiment surrounding the transaction. The acquisition highlights MGS Infotech’s potential to contribute to Yatharth’s expansion goals, further reinforcing its valuation and growth prospects.

This strategic investment in MGS Infotech marks Yatharth Hospital’s dedication to extending high-quality healthcare across the Delhi-NCR region. With the completion of this acquisition, Yatharth positions itself to serve a larger patient base with enhanced super-speciality services, advancing its mission to provide exceptional healthcare solutions.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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