Max India promoter to increase shareholding by 4% to 45.12%

Max India Limited on Thursday announced that it will raise funds from its promoter — Max group’s founder and chairman emeritus Analjit Singh — by issuing warrants amounting to ~300 crore at ~154.76 per share of Max India, priced in accordance with regulatory guidelines.

The total number of warrants issued will be 19,384,854 which translate to approximately four per cent stake in the company for the promoter. The promoter’s shareholding in the company 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.

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 per share of MHC.

IFC has been a longstanding investor in MHC, which acquired stakes in multiple tranches over a period of 10 years. After acquisition, both joint-venture partners’ stake in MHC will increase to 49.7 per cent each.

Rahul Khosla, president, Max group, 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.”