NBCC, whose resolution plan was approved by the NCLT on Tuesday, has proposed to sell-off Jaypee Infratech’s (JIL) healthcare business, which includes three hospitals in Uttar Pradesh. The state-run company aims to divest the healthcare business as this will allow it to concentrate on completion of pending units.
NBCC in its final resolution plan, which was placed before the National Company Law Tribunal (NCLT), has proposed: “NBCC proposes to divest corporate debtor’s investment/shareholding in Jaypee Healthcare to a third party with a view that the applicant does not possess requisite expertise to run operations of the healthcare business.”
Divesting the healthcare business to an expert party shall not only streamline operations at Jaypee Healthcare, but also help NBCC to focus on the core business of completion of projects and development of land parcels, it explained.
Incorporated in 2012, Jaypee Healthcare has hospitals in Noida, Chitta and Anoopshahr in Uttar Pradesh. The Noida hospital is spread over 18 acre campus (with 13 acre vacant land). It became operational in April, 2014 and has 525 beds with potential to expand upto 1,200 beds.
The Chitta hospital is located in Bulandshahr district and has 205 beds. It became operational in June, 2017, while the Anoopshahr hospital is also located in Bulandshahr district and has a capacity of 85 beds. It is currently partially operational with only OPD services.
As per NBCC’s final resolution plan, the company shall reserve the right to divest investment by inviting bids for Jaypee Healthcare. It also reserves the right to cause JIL to transfer its entire shareholding in Jaypee Healthcare into a trust, whose beneficiary would be NBCC and the trustee would be a professional entity (to be appointed by NBCC). The trust property would comprise of the entire shareholding of JIL in Jaypee Healthcare.