Max Healthcare Institute Ltd. announced the acquisition of a controlling 58.4% stake in Kalinga Hospital Ltd. for an equity value of ₹300 crore, marking its strategic entry into the Bhubaneswar healthcare market. According to reports from CNBC TV18, the acquisition will be executed through a share purchase agreement and will provide Max Healthcare control of the 250-bed multi-speciality Kalinga Hospital, which has been operational since 1997. The deal aligns with the company's growth strategy to increase its footprint in Eastern India, leveraging a well-located facility with substantial brownfield development potential.
The acquired facility is strategically located in Maitri Vihar, Bhubaneswar, spread over a 10-acre land parcel with a built-up area of about 2.6 lakh sq ft. As reported by CNBC TV18, the hospital offers comprehensive services across key specialities including cardiology, neurology, oncology, orthopaedics and renal sciences. The facility's operational status since 1997 provides immediate capacity addition to Max Healthcare's network, with the site offering immense long-term expansion potential and the capacity to scale beyond 1,000 beds in the future. The hospital is an NABH-accredited facility that will enable the company to serve the healthcare needs of the city's population and neighboring regions in West Bengal, Jharkhand, and Chhattisgarh.
Max Healthcare's board has approved loans of up to ₹100 crore to the hospital for renovation, upgradation and expansion, along with issuance of a corporate guarantee to refinance existing borrowings. According to the company's exchange filing, the acquisition will be funded through external commercial borrowings of up to ₹300 crore. The company has secured a ₹300 crore Senior Secured Term Loan through External Commercial Borrowings (ECB) from Standard Chartered Bank to finance the acquisition. An additional corporate guarantee of $5 million has been issued to facilitate the refinancing of existing promoter debt at Kalinga Hospital.
Chairman and Managing Director Abhay Soi described the deal as providing an opportunity to enter an "extremely attractive market" with a well-established hospital that offers significant operational upside and expansion potential. As reported by CNBC TV18, the deal will strengthen Max Healthcare's footprint in eastern India and add immediate capacity to its network. In addition to the hospital acquisition, the board has approved the re-appointment of Mr. Narayan K. Seshadri as a Non-Executive and Non-Independent Director for a three-year term from May 16, 2026 to May 15, 2029. Mr. Seshadri brings over four decades of expertise in business transformation and financial advisory to the board, continuing his role in providing strategic guidance to the organization.
