Shares of Park Medi World Ltd are on investors’ radar today after the company announced the incorporation of a wholly owned subsidiary to set up a 550-bed hospital. The stock opened in the green even as benchmark indices Sensex and Nifty tumbled as escalating tensions in West Asia pushed crude oil to near the USD 100-per-barrel mark. Selling in IT stocks and fresh foreign fund outflows also dented investors’ sentiment. While the 30-share BSE Sensex tanked 500.25 points to 75,060.61, the 50-share NSE Nifty declined 129.40 points to 23,506.10.
Share price today
The stock started the trading session in the green at Rs 282.75 against the previous close of Rs 282.10 on the BSE, representing a gain of Rs 0.65. The counter gained further to touch the intraday high of Rs 284.05, a gain of Rs 1.95 or 0.69 per cent from the last closing price. In between, it touched the low of Rs 281.15. Last seen, it was trading at Rs 282.30, and the company’s market cap stood at Rs 12,193.41 crore.
Hospital to be developed under the PPP model
The company has incorporated a wholly-owned subsidiary, Park Medicity Prayagraj Limited. The subsidiary has been formed to execute its upcoming 550-bed multi-super-speciality hospital in Uttar Pradesh under a Public-Private Partnership (PPP) model. The parent has acquired a 100 per cent stake in the subsidiary for Rs 0.15 crore, comprising 1,50,000 equity shares with a face value of Rs 10 each.
Details of the project
According to available information, the total project cost is around Rs 200 crore, and the mode of financing is internal accruals. The investment will get a concession of Rs 76.52 crore from the state government.
“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.
Share price history
According to BSE Analytics, the stock has delivered an 88.51 per cent return year to date (YTD), compared with a 12 per cent dip in the benchmark index. The stock has gained 40.20 per cent in six months. However, it has corrected 3.54 per cent in three months.
ALSO READ:
NSE IPO expected to open on September 18, here’s when it can list on the bourses; GMP declines
(This article is for informational purposes only and should not be construed as investment, financial, or other advice.)
