The hospital will be located on NH 24 expressway and falls on the metro corridor, 300 metre from IP extension metro line. The site is 800 metre from the existing 402 bed max super speciality hospital, Patparganj, which has been consistently reporting high level of occupancies (more than 81% during the FY18 – FY 20 period). Max Healthcare further said the hospital will have both revenue and cost synergies with the existing facility. Presently, a 20 bedded hospital is operating at the site.

The initial acquisition of majority stake is by way of upfront purchase of 26% stake, with an Escrow mechanism set up for additional 34% under call/put options to be exercised linked to achievement of certain milestones. In addition, the parties have agreed to call/put options for the balance stake to be exercised on achievement of defined milestones.

Dr. Abhay Soi, chairman and MD of Max Healthcare said, “This new hospital will allow us to cater to the need for quality healthcare of East Delhi community and fortify our network footprint in NCR in a synergistic manner. It will further enable us to bring high end clinical program and technologies to the region and also help us to continue serving the indigent patient community.”

Max Healthcare Institute is one of India's largest hospital chain operator (considering only income from healthcare services in fiscal 2021.

On a consolidated basis, the company reported a sharply higher net profit of Rs 144.65 crore in Q2 FY22 as compared to Rs 16.65 crore posted in Q2 FY21. Net sales surged 56.4% to Rs 1,018 crore in Q2 FY22 over Q2 FY21.

Shares of Max Healthcare were trading 1.97% lower at Rs 377.10 on BSE.