Max Healthcare Institute Ltd on Thursday said its board has approved providing funding of up to Rs 300 crore to its wholly-owned arm Max Hospitals and Allied Services Ltd to partly finance the cost of Phase-I expansion of bed capacity at Dr Balabhai Nanavati Hospital, Mumbai. The company’s board, at its meeting held on Thursday, approved the funding by way of loan or deposit or investment in its securities up to Rs 300 crore, Max Healthcare Institute Ltd (MHIL) said in a regulatory filing.
Further, the company said its board has also approved the issuance of sponsor’s undertaking to the lending bank or financial institutions to Dr Balabhai Nanavati Hospital (BNH) to affirm that it would continue to hold 100 per cent in stake in Max Hospitals and Allied Services Ltd (MHASL) and meet the shortfall arising due to cost and time overruns for the project.
Under the Phase-I expansion plan, 329 beds will be added at BNH, taking the total bed capacity to 660 beds. It is expected to be completed in 2025, the filing added.
On the rationale behind the step, MHIL said BNH has been experiencing high occupancy and increase in patient footfalls.
“Given the growing demand for quality healthcare due to increased penetration of insurance, preponderance of lifestyle disease, aging population and rise in affordability, it is necessary to invest in expansion of the bed capacity at BNH, in order to cater to expected increase in demand for healthcare services,” the filing said.
Meanwhile, the company said the allotment of land parcel of 6.11 acres at Sector 53 Gurugram has been cancelled by Haryana Shehri Vikas Pradhikaran (HSVP) on the grounds that a part of the land measuring 2.58 acre has not been transferred to it by the builder in compliance with license conditions.
The facts came to light on December 14, 2022 during disposal of the writ petition filed by the company at Punjab and Haryana High Court against HSVP for issuing directions to execute and register the conveyance deed, MHIL said, adding, it is taking appropriate legal advice on the matter.
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