NewsOrders & DealsJupiter Hospital, Reliance-Backed Firm Bid ₹450 Crore for SevenHills HealthcareJupiter Hospital, Reliance-Backed Firm Bid ₹450 Crore for SevenHills Healthcare
Jupiter Hospital and NK Holdings, backed by Reliance Industries, are the top contenders to acquire SevenHills Healthcare's 1,500-bed hospital in Mumbai. Both have submitted identical bids of ₹450 crore, but with different payment structures. Jupiter offers upfront payment within 30 days, while NK Holdings proposes payment over five years. The acquisition follows a seven-year insolvency process complicated by legal disputes, including unresolved claims from the Municipal Corporation of Greater Mumbai. The case involves total admitted claims of ₹1,361 crore, with JM Financial ARC as the largest debtholder.
*this image is generated using AI for illustrative purposes only.
Jupiter Hospital and NK Holdings, a company backed by Reliance Industries, have emerged as the leading contenders to acquire SevenHills Healthcare, which operates a prominent 1,500-bed hospital facility in suburban Mumbai. Both bidders have submitted resolution plans with identical valuations of ₹450 crore but significantly different payment structures, creating a strategic decision point for creditors.
Competing Acquisition Proposals
| Bidder | Offer Amount | Payment Structure |
|---|---|---|
| Jupiter Hospital | ₹450.00 crore | Upfront within 30 days of court approval |
| NK Holdings (Reliance-backed) | ₹450.00 crore | Payable over five years |
The acquisition battle comes after a prolonged seven-year insolvency process that has been marked by complex legal disputes and regulatory challenges. The resolution professional overseeing the insolvency proceedings, Abhilash Lal, along with representatives from Jupiter Hospital and Reliance Industries, did not respond to requests for comments regarding the ongoing acquisition process.
Complex Legal and Financial Background
SevenHills Healthcare's insolvency case has remained unresolved despite being admitted to the National Company Law Tribunal (NCLT) in March 2018. The company originally operated two hospital facilities - one in Mumbai and another in Visakhapatnam. To overcome delays caused by various disputes, the bankruptcy court allowed creditors to sell both hospitals separately.
The Visakhapatnam facility was successfully acquired by MGM Healthcare for ₹171.00 crore following NCLT approval in July 2024. However, the Mumbai hospital acquisition has faced significant complications due to ongoing disputes with the Municipal Corporation of Greater Mumbai (MCGM).
Outstanding Claims and Disputes
The financial complexity of the case is highlighted by substantial outstanding claims and unresolved disputes:
| Claim Details | Amount | Status |
|---|---|---|
| MCGM unpaid rent claim | ₹140.80 crore | Not admitted by RP as of March 2023 |
| Total admitted claims (both hospitals) | ₹1,361.00 crore | As of March 31, 2023 |
| Financial creditors' claims | ₹1,273.00 crore | Part of total admitted claims |
| JM Financial ARC stake | Over 75% | Largest debtholder |
MCGM, which owns the land on which the Mumbai hospital is built, has submitted a significant claim for unpaid rent. This claim has not been admitted by the resolution professional, and updated claim lists have not been provided to the Insolvency and Bankruptcy Board of India (IBBI).
Previous Failed Acquisition Attempts
The current bidding process follows a series of unsuccessful acquisition attempts. In July 2019, NCLT initially approved a ₹1,000.00 crore resolution plan by Dr Shetty's New Medical Centre (NMC). However, this plan faced legal challenges from MCGM at the National Company Law Appellate Tribunal.
While the appellate tribunal initially rejected MCGM's petition, the Supreme Court overturned both tribunal orders in November 2019. Lenders have attributed the delays to MCGM's changing position, noting that the corporation initially agreed to NMC's ₹102.00 crore offer and a commitment to reserve 20% of beds for economically disadvantaged patients, but later declined the arrangement.
Current Market Interest
Following the COVID-19 pandemic, the resolution professional restarted the acquisition process by inviting offers in 2023. The process has attracted interest from several major hospital chains, including Max Healthcare, KIMS Hospital, and Virinchi Hospital, demonstrating the strategic value of the Mumbai facility despite its legal complications.
The outstanding claims for the Mumbai hospital specifically remain unclear, as the resolution professional has not updated the verified creditors list following the separate sale of the Visakhapatnam facility in 2024.
20
