Healthcare provider Narayana Hrudayalaya Ltd announced on Monday (October 5) that it has entered into an Operation and Management Agreement with Mission of Mercy Hospital and Research Centre and The Assemblies of God of North India to operate and manage the 100-bed Mission of Mercy Hospital & Research Centre at Park Street, Kolkata. According to reports from CNBC TV18, the agreement appoints Narayana Hrudayalaya on an exclusive basis to run, manage, operate, direct and control the hospital on a long-term basis. The agreement is subject to customary payment terms, representations, warranties and obligations.
The existing hospital comprises a basement, ground floor and six floors, with an aggregate area of approximately 63,240.37 square feet and a capacity of 100 beds. As reported by CNBC TV18, the Mission of Mercy Hospital and Research Centre is a society registered under the West Bengal Societies Registration Act, 1961, with its registered office at 125/1, Park Street, Kolkata. The Assemblies of God of North India is also a society registered under the same Act, with its registered office at 18, Royd Street, Kolkata. The company stated that the agreement relates to the operation and management of the hospital and does not confer any ownership, lease rights or other interest in the underlying land upon Narayana Hrudayalaya.
Commercial operations of the hospital by Narayana Hrudayalaya are subject to satisfaction of certain conditions precedent by the respective parties, which may take up to 12 months from the date of execution of the agreement. According to CNBC TV18, the agreement is intended to leverage Narayana Hrudayalaya's experience and expertise in operating and managing healthcare facilities and support the hospital's long-term sustainability, service capacity and operations. The company emphasized that it has no shareholding in either entity and the parties are not related to the promoter, promoter group or group companies, with the transaction not falling under related party transactions.
Shares of Narayana Hrudayalaya Ltd ended at ₹1,722.00, down by ₹19.85, or 1.14%, on the BSE following the announcement, as reported by CNBC TV18. The stock movement reflects investor reaction to the company's expansion into the Kolkata healthcare market through this strategic partnership agreement.
