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Virinchi commences Phase 2 of healthcare expansion at its Banjara Hills facility

Capital Market 

Virinchi has completed two years of operations since launch of Phase 1 of the 600 bed flagship facility at by the end of May 2018. The over the past two years in the flagship hospital have stabilized reporting total of Rs.101 crores and EBITDA of Rs. 20 crores across 550 operating beds (350 at & 200 in two smaller facilities).

The company has now started project work for Phase 2 of the at facility to service economy patients to maximize from the new initiatives of GOI viz., Ayushman Bharat etc. and also start full-fledged Oncology department.

Phase 2 of would consist of 150 economy and 100 Oncology beds, costing around Rs. 70 to 80 crores. The capital works on 50 economy beds has been underway since last two quarters with internal accruals.

The Oncology involving bunkers to house accelerators will require 12-14 months for completion.

Phase 2 is planned to be supported through internal accruals, supplier credit and institutional debt. (Edelweiss) is supporting Virinchi by offering Rs. 35 crore debt, which will be taken up in tranches based on the needs of the company. This includes taking over existing debt from other institution to the extent of around Rs.11 crores. As part of the terms and conditions of the loan, the promoters have offered their personal guarantee and also Rs. 15 crores worth of shares of the company held by them as collateral.

With completion of Phase 2, all of the planned 800 beds of the will be operational, providing in over 40 clinical departments.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, June 14 2018. 18:29 IST