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Max India on Thursday announced that it will raise funds from its sponsor, Max Group’s Founder and Chairman Emeritus Analjit Singh, by issuing warrants amounting to ₹300 crore.
This will be done at ₹154.76 a share of Max India, priced in accordance with SEBI guidelines. The total number of warrants issued will be 1.93 crore which translates to approximately 4 per cent stake in Max India for Analjit Singh.
The sponsor’s shareholding in Max India will increase to 45.12 per cent as a result of this transaction.
A significant portion of the proceeds from this transaction will be utilised by Max India to acquire a 3.75 per cent stake in its flagship business Max Healthcare (MHC) from International Finance Corporation (IFC), which owns a 7.5 per cent stake in the latter company.
IFC’s balance 3.75 per cent stake in MHC will be acquired by Max India’s joint venture partner in MHC — the Life Healthcare Group, which is South Africa’s second-largest hospital chain.
The total consideration for the stake acquisition will be ₹423 crore, translating to ₹105 a share of MHC.
Partners’ stake 49.7% each IFC has been a long standing investor in MHC, who acquired stakes in multiple tranches over a period of 10 years. Post acquisition, both JV partners’ stakes in MHC will increase to 49.7 per cent each. Rahul Khosla, President, Max Group, Chairman, Max India, and Chairman, Max Healthcare, said, “ Max India’s stake increase in Max Healthcare reflects our confidence in the company’s potential. We remain committed to providing the capital the business needs to continue on its growth trajectory.”
Commenting on the sponsor’s stake increase, Mohit Talwar, MD, Max India, said, “The increase in the sponsor’s shareholding represents their unyielding commitment to the company, and more specifically, their confidence in the immense growth prospects of the underlying healthcare, health insurance and senior living businesses. IFC has been a critical supporter through MHC’s journey over the past decade and we hope to partner with them again soon.”
Andre Meyer, CEO, Life Healthcare, said, “The increase in shareholding reflects Life Healthcare’s continued commitment to the Indian healthcare market and a furthering of the partnership with Max India.”
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