HCG acquires majority stake in Vizag Hospital; stock price zooms 5%

Shares of HealthCare Global Enterprise (HCG) soared by 4.58 per cent at Rs 388.30 per share on the BSE in Friday’s intraday deals. This came after HCG said that it has acquired  51 per cent stake in Vizag Hospital with remaining 49 per cent equity to be acquired later in two tranches. The cancer care healthcare chain , however, did not disclose the amount of the acquisition. 

The cancer care hospital in an exchange filing on Thursday said that it will acquire the 34 per cent and 15 per cent in next two tranches, in accordance with the provisions of the share purchase agreement with Vizag Hospital.

“Vizag Hospital, owns and operates a comprehensive cancer care hospital in the city of

Visakhapatnam, Andhra Pradesh, with a well-built hospital infrastructure, having 196 operational beds facility, led by Dr. Murali Krishna Voonna, a renowned onco-surgeon,” the company said a statement.  

The company further said that this acquisition would help it to secure leadership in a highly attractive micro-market, enhance operational and clinical synergies, unlock capacities, and strengthen our market positioning. 

HCG headquartered in Bangalore, is India's largest cancer care provider. It operates a network of 21 cancer centres, 4 multispecialty centres, and 8 day care centres across the country, all driven by a physician-led initiative.

HCG reported a decent financial show in Q4FY24 with its revenue reaching Rs 494 crore, a 12 per cent year-on-year growth from Rs 441 crore in Q4FY23. For the full FY24, revenue amounted to Rs 1,912 crore, reflecting a 13 per cent year-on-year increase.

Profit After Tax (PAT) surged to Rs 21 crore, marking a 154 per cent year-on-year increase from Rs 8.4 crore.

At 02:15 PM; the stock of the company pared some of its gains and was trading 1.52 per cent higher at Rs 377.05 per share on the BSE. In comparison, the BSE Sensex was trading 0.25 per cent higher at 79,439 levels.