Warburg Pincus in strategic partnership with Max India Limited
To invest Rs. 200 crores through private placement
Max India Limited today announced its decision to issue preferential shares to Warburg Pincus. The issue approved by the Board represents a 29% stake in the fully diluted equity base of the Company. The planned investment, totaling Rs. 200 crore is for 10 million equity shares of Rs 10/- each at an issue price of Rs. 200 per share. With this investment, Max India joins the select group of Indian companies in which Warburg Pincus has made investments. The total investment of Warburg Pincus in India is over US$850 million.
Mr. Analjit Singh, Chairman of the Max Group said, “Raising additional capital at this stage of build-out of our new service sector businesses was a part of our long-term financial plan to support our two capital intensive businesses of life insurance and healthcare. Max has always partnered with the best in class, such as now with Warburg Pincus who are the highest pedigree private equity investor internationally. Max believes in service excellence and financial strength and this partnership would, therefore, accelerate our growth plans in the life insurance and healthcare provider sectors to emerge as leaders in their respective areas. We welcome Warburg Pincus to the Max family.”
Speaking on this occasion, Mr. Dalip Pathak, Managing Director, Warburg Pincus LLC said, “We are delighted to be investing in Max India. The life insurance and healthcare services sectors have high growth potential and Max India’s unrelenting commitment to professionalism has positioned it well for a leadership role in these sectors. Our investment is evidence of our confidence in the strong fundamentals of India’s economy, the company’s growth potential and its superior management team.”
Mr. B. Anantharaman, Group Finance Director, Max India said, “Having completed the restructuring of the Group, the Company has now fully tied up the long-term funding needs of its life insurance and healthcare businesses.” “The partnership with Warburg Pincus further underscores the strong value creation potential of Max India,” he added.
Max New York Life Insurance Company, a joint venture between New York Life, a Fortune 100 company, and Max India Limited brings innovative life insurance solutions based on New York Life’s global experience of over 158 years and Max India’s in-depth understanding of the Indian market. In recognition of Max New York Life’s high standards of service, it has become the first life insurance company in India to be awarded ISO 9001: 2000 certification. As of March 2004, Max New York Life Insurance Company has sold over 2.3 lakh policies, is having Rs. 11,238 crore as in-force sum assured and has a pan India presence through 35 sales offices in 27 cities.
Max Healthcare is all set to become India’s first truly world-class, fully integrated healthcare delivery system, offering within one model, all 3 levels of care – Primary, Secondary and Tertiary. The company plans to complete this multi-location facilities model in National Capital Region of Delhi, with a targeted investment of Rs. 520 crore, substantially within 2004-05.
As part of the final phase of its restructuring exercise, Max India exited its Pharmaceuticals and Medical Transcription businesses. This is in line with the Company’s strategic decision to focus on its core businesses of life insurance and healthcare. The Company continues to hold a 10% stake in Hutchison Max Telecom, operating cellular telephony services in the Mumbai circle.
About Warburg Pincus
Warburg Pincus has been a leading private equity investor since 1971. The firm currently has approximately $14 billion under management, including $4 billion available for investment in a range of industries including business services, energy, financial services and technologies, healthcare and life sciences, information and communication technology, media and real estate. Warburg Pincus is an experienced partner to entrepreneurs seeking to create and build durable companies with sustainable value. The firm has an active portfolio of about 125 companies.
Warburg Pincus is the largest international private equity investor in India with investments of over US$ 800 million in the country. The firm’s key portfolio companies include Bharti Tele-Ventures, Gujarat Ambuja, Moser Baer, Nicholas Piramal, Rediff and WNS Global Services.
About Max India Limited
Max India Limited is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Healthcare and Life Insurance. Max also maintains interests in Clinical Research, Telecom services and Specialty Plastic Products businesses.
For more details contact:
Head – Communications
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428+91 9873347428
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 145
Cell # +91 9873154228+91 9873154228