Virinchi has completed two years of operations since launch of Phase 1 of the 600 bed flagship facility at Banjara Hills by the end of May 2018. The healthcare operations over the past two years in the flagship hospital have stabilized reporting total healthcare revenue of Rs.101 crores and EBITDA of Rs. 20 crores across 550 operating beds (350 at Banjara Hills & 200 in two smaller facilities).
The company has now started project work for Phase 2 of the healthcare expansion at Banjara Hills 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 healthcare expansion 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.
Phase 2 is planned to be supported through internal accruals, supplier credit and institutional debt. ECL Finance Limited (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.
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