Narayana Hrudayalaya to buy Panacea Biotec’s NewRise Healthcare for Rs180 crore

The company has entered an agreement to acquire 100% stake in NewRise Healthcare from Panacea Biotec, Narayana Hrudayalaya said in a BSE filing


Founded in 2000 by Devi Prasad Shetty, Narayana Hrudayalaya has a network of 23 hospitals and 7 heart centres across India. Photo: Pradeep Gaur/Mint
Founded in 2000 by Devi Prasad Shetty, Narayana Hrudayalaya has a network of 23 hospitals and 7 heart centres across India. Photo: Pradeep Gaur/Mint

New Delhi: Bengaluru-based hospital chain Narayana Hrudayalaya Ltd has acquired Gurgaon-based multi-speciality hospital NewRise Healthcare Pvt. Ltd from drug maker Panacea Biotech Ltd for Rs180 crore.

The 230-bed hospital is in the final stages of completion and is likely to be commissioned within the next nine months, Narayana Hrudayalaya said in a stock exchange filing on Friday, adding that the acquisition is expected to strengthen its position in the north.

Narayana Hrudayalaya currently has a network of 23 hospitals and seven heart centres across India.

As per the agreement, Panacea Biotech and its associate firm PanEra Biotech Pvt. Ltd will sell 100% equity shares and 100% preference shares, respectively, in NewRise Healthcare to Narayana Hrudayalaya.

In a separate stock exchange filing, Panacea Biotech said that NewRise Healthcare’s net worth was Rs55.31 crore as of 31 March 2017.

Panacea Biotech had entered into a corporate debt restructuring exercise in 2014-15 and the company had total liabilities of Rs1,807.43 crore as of 31 March 2016.

On Friday, shares of Narayana Hrudayalaya ended down 0.2% at Rs317.65 apiece on BSE, while Panacea Biotech’s shares closed 3.6% higher at Rs164.85 each. The benchmark Sensex index fell 0.2% to 29,365.30 points.