Max India Raises Fresh Capital – Rs. 1,000 crore raised through Qualified Institutional Placement (“QIP”)
– Max India’s offering is the second largest QIP –
– Broad-based investor participation through a global road show –
Max India today announced that it has raised Rs. 1,000 crore through a QIP, which was subscribed 2.3 times by broad-based investors, spread globally. Investors having long-term horizon subscribed around 80% of the offering. CLSA acted as the sole book runner and global coordinator for the issue.
The QIP raises FII holding in the Company to 39% from around 26% earlier. Max India has an investment limit of 49% for FIIs.
Mr. B. Anantharaman, Joint Managing Director, Max India Limited, said, “We chose to go for a global road show in order to spread thematic awareness about the core sectors we are in and also share robust growth and impressive progress made by each of our businesses with a large number of investors. We met over 100 potential investors over the course of the road show in India, Singapore, Hong Kong, UK, Germany and North America, and one out of every four investors we met submitted a bid.”
“Strong sectoral growth prospects, increasing awareness of the Indian economy, coupled with the robust performance of our Life Insurance and Healthcare businesses, attracted the attention of these investors. The above, along with the credibility and reputation enjoyed by the Max Group, enthused the cross-section of potential investors to a large extent,” Mr. Anantharaman added.
The Company has issued 41,666,660 new shares at a price of Rs. 240/- per share. Each share of Max India has a face value of Rs. 2/- and therefore, the new shares have been issued at a premium of Rs. 238/- per share. The new shares aggregate 18.8% of the fully diluted equity base of the Company. About 40 % of the allocation went to US-based investors, while the remainder was split evenly between Asia and Europe based investors.
Max India plans to use the net proceeds from this issue to meet its additional funding requirements in line with its strategic business plans to further grow each of its existing businesses. A portion of the proceeds is also expected to be used for general corporate purposes, including acquisitions and investments in new ventures.
Encouraged by an almost 100% CAGR of its life insurance business since inception, the Company has committed itself to growth plans for this business.
As per SEBI regulations governing QIPs, the shares can be placed with only 49 investor accounts (including any sub-account). The final allocation of shares was made by Max India to a group of 24 investors represented by 42 investment accounts.
About Max India Limited
Max India is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Healthcare (Max Healthcare), Life Insurance (Max New York Life Insurance), and Clinical Research (Neeman Medical International). Max India’s other businesses are Specialty Plastic Products for the packaging industry (Max Speciality Products) and Healthcare Staffing (Max HealthStaff).
Max New York Life (MNYL) is a joint venture between New York Life, a Fortune 100 company, and Max India Limited. MNYL has positioned itself firmly on the quality platform. In line with its vision ‘To be the most admired life insurance company in India’, it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork.
MNYL has established a robust distribution network across the country. With 165 offices in 121 locations and more than 25,000 agent advisors, 17 bancassurance relationships, 14 corporate agents and around 300 people strong direct sales team, the Company has built a robust distribution network to support strong growth.
Max Healthcare (MHC) is one of India’s leading provider of seamless, integrated and world-class healthcare services. It is committed to the highest standards of Medical and Service excellence, Patient Care, Scientific Knowledge and Medical Education. MHC operates seven healthcare centers in the NCR, offering services in over 30 medical disciplines with super speciality services in Cardiac care, Neurosciences, Orthopaedics, Paediatrics, and Obstetrics & Gynaecology.
As part of its network, MHC operates two tertiary care hospitals at Saket. Both the hospitals have recently received NABH accreditation, two of only five hospitals in India to receive such accreditation until now.
MHC commissioned its 4th secondary hospital in Gurgaon in June’07, taking the total number of healthcare facilities under its management to 8 in the NCR region. MHC has embarked upon the next phase of its expansion, which will involve addition of 3 new hospitals, 2 in the NCR region and 1 in Dehradun. These expansion plans are expected to be completed by mid 2009, and are expected to add 450 additional patient beds, taking the overall number of patient beds under MHC’s management to over 1,200.
MHC has secured approval from IFC Washington to fund its Phase II expansion. Of the total Rs. 300 crore approved by IFC, Rs. 50 crore will be infused by way of fresh equity investment in MHC and the remaining Rs. 250 crore will be injected through preferential capital. This proposal is currently awaiting approval of the Ministry of Finance.
Neeman Medical International (NMI) is a Clinical Research services provider offering various services across the value chain of new drug development to a growing list of pharmaceutical, biotech and CRO clients, in India and abroad. NMI continues to focus on developing alliances with mid sized pharma and biotech companies to transition their drug development work to India. NMI continues to focus on building business development pipeline through organic measures and intends to explore inorganic growth options as well.
Max Speciality Products (MSP) specializes in manufacturing of wide range of sophisticated barrier and packaging films. The BOPP division of MSP has an installed capacity of 29,000 tons per annum. MSP’s leather finishing foil business division manufactures a range of leather finishing and laminating foils. MSP has recently concluded its capacity enhancement program, which resulted in the overall capacity getting trebled by adding a state-of-the-art new production line.
Max HealthStaff International (MHS) is an international healthcare staffing company, founded on world class quality and service excellence. It is committed to be India’s leading healthcare staffing company, placing professionals at healthcare institutions in India and abroad. MHS offers a comprehensive overseas nursing program to Indian nurses. MHS operates its business through 7 training centers located in Delhi, Chandigarh, Kottayam and Chennai.
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