Vijaya Diagnostics Board Approves Dividend, Acquisition, ESOPs

Vijaya Diagnostic Centre's Board met on May 7, 2026, announcing key decisions including a ₹2 per share final dividend recommendation and the acquisition of Medinova Millennium's diagnostic services for approximately ₹4.20 crore.

The proposed dividend requires shareholder approval. The acquisition will add Medinova Millennium's MRI, EEG, and NCV Services Business to Vijaya Diagnostics' portfolio. The company also approved granting 1,79,500 Employee Stock Options (ESOPs) at ₹784 per option under its VDCL Employee Stock Option Plan 2018.

The Board noted that Independent Director Dr. D Nageshwar Reddy will not seek reappointment for a second term. Audited standalone and consolidated financial results for the fiscal year ended March 31, 2026, were reviewed, though figures were not disclosed in this announcement.

The acquisition aims to enhance service offerings and align with the company's growth strategy. ESOP grants serve to incentivize and retain employees. The dividend offers a direct return to shareholders.

This acquisition, classified as a Related Party Transaction, is expected to be completed within three months. While exempted under SEBI regulations, such transactions may attract closer scrutiny.

This focused expansion mirrors growth strategies in the diagnostic sector, seen in players like Dr. Lal PathLabs and Metropolis Healthcare focusing on network expansion and service diversification.

Key upcoming actions include the Annual General Meeting (AGM) for dividend approval, the completion of the acquisition, and the appointment of a new independent director.