HealthCare Global to Acquire Nagpur Oncology Operations from Subsidiary

HealthCare Global Enterprises Limited (HCG) entered into a Business Transfer Agreement (BTA) on November 9, 2024, with its wholly-owned subsidiary, HCG NCHRI Oncology LLP, for the acquisition of the latter’s oncology business located in Nagpur. This acquisition, structured as a slump sale, involves transferring the entire business undertaking of HCG NCHRI Oncology LLP (the Seller or Target Entity) to HCG (the Company or Buyer).

HealthCare Global Enterprises Acquires Oncology Business in Nagpur

The revenue generated by the business undertaking, as per the unaudited financials for the half-year ending September 30, 2024, was approximately ₹435 million. The objective of this acquisition is to streamline HCG’s operational model by integrating the oncology services provided by its subsidiary directly under the Company. 

This reorganisation aims to simplify the structure of HCG and its subsidiaries, eliminating complexities arising from assets housed across multiple entities. This move is expected to enhance synergy within the business, boost operational efficiency, and foster a more cohesive service delivery model.

The acquisition will be effective from December 1, 2024. The total consideration payable for the business transfer is capped at ₹25 crores, with the final amount to be determined on the effective transfer date. This consideration will be paid in cash. Notably, this transaction is limited to the acquisition of the business undertaking and does not involve the transfer of shareholding or control over HCG NCHRI Oncology LLP.

Q2 and H1 FY 2025 Financial Results Highlights

In addition to this strategic acquisition, HCG also announced its financial results for the second quarter (Q2 FY25) and the first half (H1 FY25) of the fiscal year ending September 30, 2024. The company achieved a consolidated revenue of ₹5,535 million in Q2 FY25, reflecting a 14% year-over-year growth. Profit After Tax (PAT) for the same period was ₹180 million, a 33% increase compared to the previous year.

For the half-year period, HCG recorded revenue of ₹10,791 million, marking a 14% year-over-year growth. The PAT for H1 FY25 was ₹301 million, representing a substantial 42% increase from the same period in the prior year. 

On November 11, 2024, HealthCare Global Enterprises share price opened at ₹475.95, touching the day’s low at ₹457.35, as of 9:41 AM on the NSE.

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