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The company said that the transaction will be an all-cash deal and is estimated to be consummated by end of July 2023, subject to certain conditions as stipulated in the definitive agreements.
The facility, which is on a leased premises, was commissioned in October 2020 and is located on the arterial Arcot Road. It currently has 110 operational beds with a potential to scale up-to approximately 200 beds.
Fortis said that the aforesaid divestment is a part of its ongoing portfolio rationalization strategy in order to focus on deepening its presence in select geographic clusters where it has a sizeable presence.
Dr. Ashustosh Raghuvanshi, managing director & CEO of Fortis Healthcare commented: “The divestment of Arcot Road hospital business operations is in line with our stated intent of optimizing our hospital assets keeping in mind our key markets and regions. This also underpins our focus on improving our overall profitability and margins in the segment, allowing us to re-allocate capital in our key clusters.”
Fortis Healthcare is a leading integrated healthcare delivery service provider in India. The healthcare verticals of the company primarily comprise hospitals, diagnostics and day care specialty facilities. Currently, the company operates 27 healthcare facilities (including O&M facilities). The company's network comprises approximately 4,500 operational beds and 400 diagnostics centres.
The company's consolidated net profit surged 95% to Rs 132.55 crore on 19.2% rise in revenue from operations to Rs 1,642.70 crore in Q4 FY23 over Q4 FY22.
Shares of Fortis Healthcare were up 0.53% to Rs 310.90 on the BSE.
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