Another major corporate demerger has entered the spotlight, this time involving a hospital chain valued at over ₹38,000 crore. Bengaluru-based Narayana Hrudayalaya Ltd has announced a business restructuring that will see its clinical services segment spun off through a formal demerger process.
The company’s shares ended Friday’s trading session on the BSE at ₹1,870.35, down 0.80 per cent. In an exchange filing dated December 12, Narayana Hrudayalaya disclosed that its board has approved a Scheme of Arrangement to separate specific business operations.
What the demerger involves
The restructuring will take place between NH Integrated Care Private Limited (NHIC), the demerged entity, and Narayana Hrudayalaya Limited (NHL), the resulting company.
“Scheme of Arrangement provides for the demerger of the Clinical Services undertaking of NHIC into NHL,” the company stated in its filing.
As part of this move, the Clinical Services business of NHIC—comprising 10 clinics located across Bengaluru—will be transferred to Narayana Hrudayalaya.
Scope of the Clinical Services business
The Clinical Services undertaking includes NHIC’s network of clinics that deliver accessible, preventive, and continuous integrated care. This covers routine consultations and ongoing care models but specifically excludes the Narayana Aarogyam platform.
Narayana Aarogyam, also operated by NHIC, focuses on preventive healthcare offerings such as health screenings, risk assessments, wellness coaching, and continuous monitoring aimed at early detection and intervention before disease onset. This business will remain with NHIC post-demerger.
Financially, the Clinical Services undertaking reported a turnover of ₹39.94 crore for the year ended March 31, 2025. This represents about 1.11 per cent of the standalone turnover of the resulting company for the same period.
Strategic rationale and shareholding impact
Explaining the rationale behind the move, Narayana Hrudayalaya said that carving out the Clinical Services business will allow NHIC to concentrate exclusively on preventive healthcare. The sharper strategic focus is expected to support growth in this niche segment and enhance long-term shareholder value.
On the question of ownership, the company clarified that the demerger will not alter its shareholding structure. “There will be no change in the shareholding pattern of the Resulting Company as NHIC is a wholly-owned subsidiary of NHL,” the filing noted.
Post-restructuring, Narayana Hrudayalaya will continue to hold 100 per cent equity in NHIC, which will remain its wholly-owned subsidiary.
No new listing required
The company also addressed whether the demerger would lead to a separate stock market listing. It confirmed that no new listing is required, as the resulting entity is already listed and no consideration is involved in the demerger, given the wholly-owned subsidiary structure.
Financial performance and stock trajectory
Narayana Hrudayalaya reported strong financial performance in Q2 FY26, with net profit rising 30 per cent year-on-year to ₹258.49 crore. Total income for the September 2025 quarter increased 17 per cent year-on-year to ₹1,667.78 crore.
Known widely as Narayana Health, the Bengaluru-headquartered healthcare group has delivered strong stock market returns. According to BSE data, its shares have gained over 40 per cent in the past year, 60 per cent over two years, and 145 per cent across the last three years.
The demerger signals a strategic recalibration—separating operational clinical services from preventive healthcare ambitions—at a time when the company continues to post robust growth across both financial and market performance metrics.
