Announced Tue, 19 May · 23:05 IST

The Board of Directors of the Company has approved the divestment by way of sale of its entire equity shareholding in its wholly owned subsidiary- BACC Health Care Private Limited to Inviga ....

Core Business DivestedStrategic Transactions View source PDF

HCG · price

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Price reaction · full curve 14 horizons · vs prior close
-2.7%1-day move
₹649.50
prior close
₹632.00
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AI summary

HCG has approved the sale of its entire equity holding in wholly-owned subsidiary BACC Health Care Private Limited to Inviga Healthcare Fund I for INR 37.64 crore. BACC operates in fertility and reproductive healthcare services, which is explicitly stated as non-core to HCG. The transaction is a related party deal as HCG's Promoter and Non-Executive Chairman Dr. B.S. Ajaikumar controls the buyer fund. The deal follows a competitive process and was approved by the Audit Committee and Board on an arm's length basis, with valuation from an independent third-party. BACC contributed INR 60.45 crore revenue (4.45% of HCG standalone) and had net worth of INR 17.53 crore (1.09% of HCG standalone) for FY 2025-26. Completion is expected within 4-5 weeks. HCG intends to reinvest the proceeds in its core cancer services business.

Likely market impact

The divestment is positive for HCG as it allows the company to exit a non-core, low-contribution segment and focus capital on its primary cancer care business. The related party nature and relatively small contribution (under 5% of revenue) likely minimises shareholder concern, though the connection between promoter and buyer warrants scrutiny on pricing fairness.