IFC to invest $75 mn in Max Healthcare
Max Healthcare Institute Ltd has lined up around $325 million to acquire balance stake in Saket City Hospital Private Limited (SCH). The proposed investment will be backed by IFC.
The project cost is approximately $325 million. The proposed IFC’s investment comprises subscription of up to ~487.5 crore ($75 million) in secured non-convertible debentures (NCDs) of MHIL. The project comprises acquisition of balance 49 per cent of SCH and capital expansion of Max Healthcare Institute Limited (MHIL), according to IFC. MHIL is exploring possibilities to fund the acquisition from overseas market and external commercial borrowings cannot be used for such acquisitions. IFC, with its ability to subscribe to NCDs under its foreign portfolio investor licence, is uniquely positioned to provide the funding with the requisite tenor and amount for the acquisition which is a milestone for the planned expansion programme, said IFC. SCH provides medical services to Max Smart Super Specialty Hospital, which is an unit of and owned by Gujarmal Modi Hospital & Research Centre for Medical Sciences.
Max Smart is adjacent to the Max Super Specialty Hospital (West Block), a unit of MHIL, and Max Super Specialty Hospital (East Block), a unit of Devki Devi Foundation. MHIL plans to create a medicity across the joint complex of the hospitals located at a prime location of Saket in south Delhi.
MHIL will develop the complex to create a specialised centre for premier quaternary care with seven centres of excellence for selected specialties to provide comprehensive clinical services. MHIL is a JV between Max India Limited (MIL) and Life Healthcare, each holding 45.95 per cent. MIL is the listed entity for health care assets of Max group and includes MHIL, Max Bupa (health insurance) and Antara (senior living). IFC holds a 3.1 per cent stake in MIL and 7.5 per cent stake in MHIL.