Park Medi World Share Rises After Company Announces Rs 200 Crore Plan for 550-Bed Hospital

Shares of Park Medi World Ltd ended marginally higher on Wednesday, September 9, after the company announced plans to develop a 550-bed multi-super-speciality hospital in Prayagraj, Uttar Pradesh, through a Public-Private Partnership (PPP) model.

Park Medi Share Price Today

The stock closed at Rs 282.55, up Rs 0.30 or 0.11% for the day. The positive closing came despite weakness in the broader equity market, with benchmark indices Sensex and Nifty facing selling pressure amid escalating geopolitical tensions in West Asia and a surge in crude oil prices.

Park Medi World Forms Subsidiary for 550-Bed Hospital

The company has incorporated Park Medicity Prayagraj Limited as a wholly owned subsidiary to undertake the development of the proposed multi-super-speciality hospital in Uttar Pradesh.

Park Medi World has acquired a 100% stake in the subsidiary through an investment of Rs 0.15 crore, comprising 1,50,000 equity shares with a face value of Rs 10 each. The new entity will spearhead the development of the 550-bed hospital under the PPP model, marking an important step in the company's healthcare expansion strategy.

Park Medi World Plans Major Healthcare Expansion in Uttar Pradesh

While the initial investment in the subsidiary is relatively small, the larger hospital project involves an estimated investment of around Rs 200 crore. According to the available information, the company plans to finance the project through internal accruals. The project will also receive a concession of Rs 76.52 crore from the Uttar Pradesh government.

550-Bed Hospital to Be Built on 3.22-Acre Site

The proposed multi-super-speciality hospital will be developed on a 3.22-acre site allotted by the Municipal Corporation. The project also includes the possibility of future expansion. Park Medi World has the option to secure an additional 2.47 acres from the fifth year following the Commercial Operations Date (COD), potentially giving the company additional space to expand its healthcare infrastructure.

"The hospital will be developed on a 3.22-acre site allotted by the Municipal Corporation, with an option to secure an additional 2.47 acres from the fifth year following the Commercial Operations Date (COD), providing built-in headroom for future expansion," the company said.

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