Shalby gains on amendment agreement for hospital building in Mumbai

The company will do operations & management of newly constructed hospital facilities for 30 years.

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Shares of Shalby gained 1.5 percent in early trade on November 23 after the company executed the amendment agreement for the construction of a new hospital building at Santacruz, Mumbai.

At 9:23am, Shalby was quoting Rs 315.45, up Rs 4.75, or 1.53 percent on the BSE.

The company executed the operation and management agreement with the Santacruz Residents Association and Bhikhubai Chandulal Jalundwala General Hospital (BCJ) for the construction of a new hospital building at Santacruz, Mumbai.

This project will be executed upon receipt of approval from the Charity Commissioner, Mumbai. The company will construct 175 beds new hospital at Santacruz, Mumbai.

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The details of the amendment are an interest-free security deposit of Rs 37.50 crore to be provided by the company to the Trust, out of which Rs 29.65 crore has been provided to the Trust and the same shall be recovered in 30 years on yearly basis.

The company will do operations and management of newly constructed hospital facilities for 30 years.

The Trust will refund security deposit along with 9 percent interest within a period of 12 months, in case of non‐receipt of approval from the charity commissioner of Mumbai.

The company had reported a 50 percent rise in its September quarter net profit at Rs 27.58 crore.