Yatharth Hospital and Trauma Care Services Limited, a leading healthcare provider, has successfully acquired a 60% controlling stake in M/s. MGS Infotech Research and Solutions Private Limited. The acquisition is linked to a healthcare facility located in Sector 20B, Faridabad, Haryana. This acquisition marks a significant step in Yatharth Hospital's expansion strategy as it prepares to enhance its healthcare services.

Background of the Acquisition

Yatharth Hospital had earlier communicated the intention to acquire a 60% equity share in MGS Infotech through regulatory disclosures on October 30, 2024, and January 18, 2025. The acquisition involved the transfer of equity shares in the name of Yatharth Hospital, allowing it to gain a controlling stake in the company.

The acquisition process has now been successfully completed, and the company has fulfilled all the requisite formalities under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Details of the Acquisition Process

1. Equity Transfer: The formal transfer of equity shares from MGS Infotech to Yatharth Hospital has been completed, giving Yatharth Hospital control over the hospital operations in Sector 20B, Faridabad.

2. Regulatory Compliance: The acquisition has been conducted in accordance with Regulations 30 and 30A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

3. Formalities Completed: All necessary documentation and compliance procedures have been concluded, paving the way for Yatharth Hospital to commence its hospital operations in Faridabad.

Strategic Significance of the Acquisition

Yatharth Hospital's acquisition of a controlling stake in MGS Infotech is a strategic move aimed at enhancing its healthcare footprint in the region. This acquisition will enable the hospital to leverage advanced medical technologies and provide high-quality healthcare services to the residents of Faridabad and surrounding areas.

• Expansion of Services: Yatharth Hospital aims to introduce specialized medical services and enhance the existing infrastructure to cater to a wider population.

• Control Over Operations: With 60% equity, Yatharth Hospital has gained management control over the hospital, ensuring streamlined operations and improved service delivery.

• Enhanced Patient Care: The acquisition aligns with Yatharth Hospital’s vision to provide top-notch healthcare services while expanding its network in key locations.

Timeline and Operational Plans

Yatharth Hospital has announced that hospital operations at the acquired facility will begin soon, following the completion of the acquisition. The management has expressed confidence that the facility in Sector 20B, Faridabad, will start delivering quality healthcare services in the near future.

• Operational Readiness: The hospital is currently undergoing final preparations to ensure smooth operations once it opens its doors.

• Service Expansion: The facility is expected to offer multi-specialty services, catering to diverse healthcare needs.

Regulatory and Compliance Adherence

The acquisition has been carried out in strict adherence to the Securities and Exchange Board of India (SEBI) guidelines, specifically under Regulations 30 and 30A of the Listing Obligations and Disclosure Requirements (LODR), 2015.

• Regulation 30 Compliance: Yatharth Hospital has duly disclosed all material information related to the acquisition to the stock exchanges.

• Regulation 30A Adherence: The completion of formalities has been communicated as per the regulatory framework to ensure transparency and compliance.

Implications for Stakeholders

The successful completion of this acquisition brings positive implications for various stakeholders, including:

• Shareholders: The acquisition is expected to enhance shareholder value by expanding Yatharth Hospital’s presence in the healthcare sector.

• Patients: The hospital will provide access to advanced medical services and a wide range of healthcare options.

• Healthcare Ecosystem: The addition of this hospital to Yatharth’s network strengthens the overall healthcare ecosystem in the region.

Future Growth and Expansion Plans

Yatharth Hospital is expected to continue its expansion strategy by exploring more opportunities for acquisitions and collaborations that align with its growth objectives. The acquisition of MGS Infotech is part of a broader plan to increase market presence and improve healthcare services across India.

• Potential Collaborations: Yatharth Hospital is exploring opportunities for collaborations with other healthcare providers to enhance service offerings.

• Technology Integration: The hospital plans to integrate cutting-edge technologies to improve operational efficiency and patient outcomes.

Official Communication and Next Steps

The formal intimation of the acquisition was submitted to both the National Stock Exchange of India Limited (NSE) and BSE Limited (BSE) under the prescribed regulations.

Conclusion

Yatharth Hospital’s successful acquisition of a 60% controlling stake in MGS Infotech Research and Solutions Private Limited marks a significant milestone in its journey of growth and expansion. The upcoming operational launch of the hospital in Sector 20B, Faridabad, is expected to strengthen Yatharth Hospital’s position as a leading healthcare provider.

With a commitment to delivering quality healthcare services and adhering to regulatory compliance, Yatharth Hospital is poised to make a positive impact on the healthcare landscape in the region.

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