Max Healthcare Institute Limited has announced the approval of a Scheme of Amalgamation between its two wholly-owned subsidiaries—Crosslay Remedies Limited and Jaypee Healthcare Limited. The announcement was made following a communication received by the Company on March 21, 2025, at 10:45 pm IST, after the respective Boards of Directors of the two entities approved the scheme during their board meetings held on the same day.
As per the disclosure, Crosslay Remedies Limited, the transferor company, and Jaypee Healthcare Limited, the transferee company, are both incorporated under the Companies Act, 1956. The amalgamation seeks to merge Crosslay Remedies into Jaypee Healthcare for more efficient management and growth. As of March 31, 2024, the transferor company reported a turnover of ₹797.39 crore, while the transferee company recorded a turnover of ₹420.35 crore.
Though the transaction qualifies as a related party transaction, it is exempted under Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, since it involves two wholly-owned subsidiaries of Max Healthcare. The amalgamation is intended to consolidate operations in the healthcare sector, streamline management structures, reduce overheads, and enable optimal utilization of resources. It is also expected to simplify regulatory compliance, improve cash flow management, and enhance margins through multiple synergies.
Max Healthcare clarified that the amalgamation will not affect its own shareholding pattern, as the parent company is not directly a party to the scheme. The entire process is aimed at achieving organizational efficiencies, administrative rationalization, and long-term value creation for all stakeholders involved.
