Venkatesh Ganesh Analjit Singh, founder of Max Group, has sold a 4.6 per cent stake in Max Healthcare for about ₹515 crore to London-based wealth management giant Capital International Group.

According to sources close to the company, Singh intends to use the proceeds from the stake sale for settling his personal debt. “Following this deal, Singh will hold an about 2 per cent stake in Max Healthcare, which will also be sold going forward because he is no longer the promoter of Max Healthcare,” the source said.

Shares of Max Healthcare almost hit the upper circuit on Friday and closed at ₹131.30, up 17.44 per cent compared to the previous day’s close.

Last June, KKR-backed hospital management firm Radiant Life Care had acquired a 49.7 per cent stake in Max Healthcare. As part of the deal, Max India’s promoters received a ₹361-crore advance from KKR. This deal signalled the exit of Singh as the promoter of the healthcare business that he had founded in 2001.

When contacted, a company spokesperson said: “We confirm that we sold some stake in Max Healthcare earlier today. This is another step towards our previously stated intent to significantly reduce the share pledge and decrease personal debt to zero. We had earlier divested some private real estate in the UK and also sold a minor stake in Max Financial Services for this purpose.”

Earlier transaction

In August, Singh also sold a part of his shares in Max Financial Services through the open market, netting about ₹350 crore. The Singh family had debt of around ₹3,400 crore as of December 2019.

Max Healthcare was listed on the bourses recently, as the final outcome of the amalgamation of the erstwhile Max India into Max Healthcare and the demerger of the healthcare businesses of Radiant Life into Max Healthcare. The resulting merger came into effect on June 1.