Apollo Hospitals gains after signing MoU with Chinese company

Apollo Hospitals Enterprise rose 0.6% to Rs 1,308 at 9:30 IST on BSE after the company said that it signed Memorandum of Understanding with China's Hainan Ecological Smart City Group.

The announcement was made after market hours yesterday, 20 June 2016.

Meanwhile, the S&P BSE Sensex was down 43.68 points or 0.16% at 26,823.24.

On BSE, so far 772 shares were traded in the counter as against average daily volume of 15,817 shares in the past one quarter. The stock hit high of Rs 1,316 and low of Rs 1,305.60 so far during the day.

Apollo Hospitals Enterprise said that it signed Memorandum of Understanding (MoU) with China's Hainan Ecological Smart City Group (HESCG) to jointly build a hospital in Hainan Province, China, where a Smart City is being developed in China's largest Special Economic Zone. HESCG is a Chinese industrial park development and operations company from the Hainan province of China. The collaboration with Apollo Hospitals would begin with the development of a state of the art hospital and the colleges and will lead to the development of advanced healthcare IT systems and telemedicine solutions. The MoU is also aimed at expanding to other parts of China and also extend into India with suitable model of collaboration which will be discussed post the signing of the MoU.

HESCG will provide land, all the investments for the construction, commissioning and equipping the hospital besides all operative expenses, while Apollo Hospitals Group would provide its services for technical consulting, planning and commissioning of the hospital and post completion of the hospital, provide services for the operations and management of the hospital. Apollo Hospitals would also support in building the technical and management personnel, install it's acclaimed patient care clinical protocols and practices, the company said in a statement.

Apollo Hospitals Enterprise's net profit fell 2.1% to Rs 75.69 crore on 16% rise in net sales to Rs 1396.26 crore in Q4 March 2016 over Q4 March 2015.

Apollo Hospitals is one of Asia's largest healthcare groups.

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