Under the agreement, Narayana Hrudayalaya has been appointed on an exclusive basis to run, manage, operate, direct and control the hospital on a long-term basis. The agreement is subject to customary payment terms, representations, warranties and obligations.
The existing hospital comprises a basement, ground floor and six floors, with an aggregate area of approximately 63,240.37 square feet and a capacity of 100 beds.
ALSO READ | Narayana Health expects existing hospitals to power growth as insurance business scales
The agreement is intended to leverage Narayana Hrudayalaya’s experience and expertise in operating and managing healthcare facilities and support the hospital’s long-term sustainability, service capacity and operations.
The company said the agreement relates to the operation and management of the hospital and does not confer any ownership, lease rights or other interest in the underlying land upon Narayana Hrudayalaya.
Commercial operations of the hospital by the company are subject to satisfaction of certain conditions precedent by the respective parties. The process may take up to 12 months from the date of execution of the agreement.
ALSO READ | Narayana Health focuses on GCC, insurance and UK turnaround for next growth phase
Mission of Mercy Hospital and Research Centre is a society registered under the West Bengal Societies Registration Act, 1961, with its registered office at 125/1, Park Street, Kolkata. The Assemblies of God of North India is also a society registered under the same Act, with its registered office at 18, Royd Street, Kolkata.
Narayana Hrudayalaya said it has no shareholding in either entity and the parties are not related to the promoter, promoter group or group companies. The transaction does not fall under related party transactions.
Shares of Narayana Hrudayalaya Ltd ended at ₹1,722.00, down by ₹19.85, or 1.14%, on the BSE.
ALSO READ | Narayana Hrudayalaya shares surge 10% after Q2 results, detailing expansion plans