Narayana Hrudayalaya Ltd, the country's second-largest hospital chain by the number of operational beds, will sell its Hyderabad hospital to partner Chandramma Educational Society for an undisclosed amount.
"As part of our regular strategic business reviews, we constantly monitor and assess risks and costs associated with all our business units,” said Ashutosh Raghuvanshi, vice chairman, managing director and group CEO of the Bengaluru-based Narayana Hrudayalaya, in a filing to the stock exchanges.
The Malla Reddy Narayana Multispecialty Hospital has 195 operational beds and was commissioned in July 2010 on a 20-year lease with Chandramma. The hospital generated Rs 32.2 crore revenue in the nine months ended December 31, 2015. This represented 2.7 per cent of Narayana Hrudayalaya’s total revenue of Rs 1,181.50 crore during the period.
The company indicated that it would be open to more such sales in the future. “We would continue to be flexible and pragmatic in the future as well to sustain the long-term interests of the business,” Raghuvanshi said.
Narayana Hrudayalaya, founded by cardiologist Devi Shetty in 2000, made a strong stock market debut early this year after spectacular listings by a few other healthcare companies late last year. Its private equity investors Pinebridge (formerly AIG Capital) and JPMorgan Partners part-exited in the IPO.
The company has 22 hospitals and seven heart centres across India with about 5,200 operational beds. Although it is the third-largest hospital chain by revenue and market value, it has far higher number of beds compared with Fortis Hospital. Apollo Hospitals is the biggest hospital chain by number of operational beds, revenue and market value.