Max Healthcare Subsidiary Merger to Improve Cash Flow & Compliance

Crosslay Remedies to Merge into Jaypee Healthcare Under Max Healthcare Restructuring

Max Healthcare Institute has approved a Scheme of Amalgamation between its wholly-owned subsidiaries, Crosslay Remedies and Jaypee Healthcare.

The move aims to streamline management, enhance financial efficiency, and reduce compliance burdens.

The merger, approved by the respective Boards of Directors on March 21, 2025, will see Crosslay Remedies Limited, the transferor company, amalgamated into Jaypee Healthcare Limited, the transferee company. Both entities are incorporated under the Companies Act, 1956.

Strategic Consolidation for Operational Efficiency

According to financial data as of March 31, 2024, Crosslay Remedies reported a turnover of INR 797.39 Cr, while Jaypee Healthcare recorded INR 420.35 Cr.

By consolidating operations, the companies aim to optimize resource utilization and improve cash flow management.

Despite being classified as a related party transaction, the merger is exempt under Regulation 23 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as both entities are wholly owned by Max Healthcare.

Expected Impact on Healthcare Operations

Max Healthcare has stated that the amalgamation will not impact its shareholding pattern, as the parent company is not directly involved in the scheme. The restructuring is expected to bring several operational benefits, including:

• Administrative Rationalization – A more integrated management structure to reduce redundancy.

• Regulatory Simplification – Streamlined compliance processes to ensure smoother operations.

• Financial Synergies – Improved margins and cost efficiencies from consolidated functions.

Max Healthcare emphasized that the merger is aimed at "achieving organizational efficiencies and long-term value creation for all stakeholders involved."

The development aligns with broader trends in the healthcare sector, where consolidation is increasingly seen as a means to improve service delivery and financial stability.