Shares of hospital chain Park Medi World Ltd will be on investors’ radar as the company has informed exchanges that it wholly owned subsidiary will operate and manage a 300-bed multi-super speciality hospital in Kanpur district of Uttar Pradesh. Amid this, the stock opened in the red at Rs 276.05, with a drop of Rs 3.2 or 1.14 per cent from the previous close of Rs 279.25 on the BSE. However, it gained to touch the high of Rs 281.05, representing a gain of Rs 1.8 or 0.64 per cent. However, the stock soon witnessed profit booking and dipped to touch the intraday low of Rs 272.70. Last seen, the stock was trading at Rs 274.90 with a fall of Rs 4.35 or 1.56 per cent. The market cap of the company stood at Rs 11,873.78 crore.ย
Subsidiary signs agreement
The company said its wholly owned subsidiary, Aggarwal Hospital and Research Services Private Limited (AHRSPL), has signed an Operations and Management (O&M) agreement with Axis Educational Society (AES).
As per the information shared, the 300-bed facility will span around 1.2 lakh square feet of covered area. The hospital will be commissioned by the end of the current financial year. Before that, the Hospital will be renovated and re-equipped to offer a comprehensive range of multi-super speciality services to Kanpur and its surrounding catchment.
Details of consideration paid
AHRSPL will pay AES a revenue share of 6% of collections, subject to a minimum guaranteed payout of โน0.20 crore per month plus applicable GST.
“AHRSPL shall pay to AES a revenue share equivalent to 6 per cent of the collections subject to applicable taxes with minimum guaranteed amount of INR 20,00,000 per month inclusive of GST during the First Year from the Effective Date of the aforesaid agreement, thereafter, INR 20,00,000 (Rupees Twenty Lac only) per month plus GST,” the company said in an exchange filing.ย
Incorporates subsidiary to set up 550-bed hospital
Earlier, the company announced the incorporation of a wholly-owned subsidiary, Park Medicity Prayagraj Ltd, to develop and operate a 550-bed multi-super-speciality hospital in Uttar Pradesh.
The new entity has been established to execute a project awarded to the company under the Public-Private Partnership (PPP) model by the Prayagraj Municipal Corporation.
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(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)