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Max Healthcare

Hospitals Secure 50% Share in Healthcare FDI, Driving Sector Growth

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Foreign direct investment (FDI) in India’s healthcare sector has seen a significant shift, with hospitals now commanding 50% of the total FDI in FY24, amounting to $1.5 billion. This marks a substantial rise from 24% in FY21, signaling a growing investor preference for hospitals over the traditionally dominant pharmaceuticals sector. Post-Covid, hospitals and diagnostics have emerged as key areas for investment, driven by rising demand for quality healthcare, increased insurance coverage, and untapped potential in underserved regions. The surge has led to high-profile transactions such as Temasek’s $2 billion acquisition of an additional 41% stake in Manipal Hospitals, valuing the chain at $4.8 billion. “The Indian market’s size, high disease burden, and growing insurance penetration make it an attractive destination for investors,” said Sujay Shetty, Global Health Industries Advisory Leader, PwC India. “The hospital sector’s reinvestment in infrastructure further supports its robust growth trajectory.” Prominent hospital chains like Max Healthcare are spearheading expansion plans, with the group investing over ₹5,000 crore to double its capacity in the next three years. Abhay Soi, CMD of Max Healthcare, emphasized the capital-intensive nature of the sector and its critical role in achieving India’s $5 trillion economy target. Investor interest has also been buoyed by successful primary market transactions, including IPOs of six hospital chains, raising around ₹3,600 crore through IPOs and qualified institutional placements (QIPs). This influx of funds is expected to boost bed capacity among the 10 listed hospital firms by 47% over FY24-27, with expansions concentrated in north and south India, according to BNP Paribas analyst Tausif Shaikh. The momentum highlights a transformative era for India’s healthcare landscape, with hospitals at the forefront of FDI-driven growth, paving the way for enhanced healthcare access and infrastructure development nationwide. Source: Times of India Photo Credit: Times of India

Max Health Shares Dip 4% as NSE Refuses Fine Waiver for Flouting Board Norms

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Max Healthcare Institute Ltd faced a setback in its stock value as shares dipped by 4.4% to Rs 782 per share in Thursday’s intraday trading. This decline followed the National Stock Exchange’s decision not to waive off a fine amounting to Rs 2,36,000 imposed on the hospital chain. The refusal by NSE to grant the waiver came after Max Healthcare’s request for leniency regarding a fine imposed last year in November. The fine was levied for non-compliance with the board composition requirements outlined under regulation 17(1) of the SEBI Regulations, 2015. Despite this setback, Max Healthcare is continuing its growth trajectory with a significant investment plan. The company is gearing up to invest Rs 2500 crore in developing hospitals in Lucknow, with a particular focus on expanding its footprint in Uttar Pradesh. Max Healthcare had earlier acquired the 550-bed Sahara Hospital in Lucknow for Rs 940 crore, a move aimed at solidifying its position as a key player in the private healthcare sector in the state. The investment plan includes doubling the group’s capacity by adding 4,200 beds over the next four to five years, representing an investment of over Rs 5,000 crore. This expansion initiative aligns with Max Healthcare’s vision to enhance its presence and service offerings in the region. The acquisition of Sahara Hospital, now renamed Max Super Specialty Hospital, marks the beginning of Max Healthcare’s strategic expansion plans. The hospital, situated in Gomti Nagar, Lucknow, boasts 285 operational beds and occupies a 27-acre land area. Despite the recent stock price dip, Max Healthcare remains a significant player in the healthcare sector, managing 17 hospitals with over 3,500 beds and employing more than 4,800 clinicians across various locations including the Delhi National Capital Region, Mohali, Bathinda, Dehradun, and Mumbai. At 11:48 AM, Max Healthcare was trading 3.40% lower at Rs 790.20 per share. The stock has shown resilience over the past month, gaining 8.12%, and has demonstrated strong growth, rallying 36.66% over the last six months. Currently, it trades at a price-to-earnings multiple of 138.88.