Analjit Singh & family buy 3.3% additional stake in Max Ventures from Goldman Sachs

Billionaire industrialist Analjit Singh has hiked holding in Max Ventures and Industries Ltd (MVIL) through a secondary market transaction after an open offer to raise stake in the firm failed early this year.

Global investment banking and investment firm Goldman Sachs on Tuesday sold 3.33% stake in Max Ventures to Siva Enterprises Pvt. Ltd, a promoter group entity. Goldman Sachs’ arm Xenok Ltd sold 17.78 lakh shares through a block deal on the NSE at a weighted price of Rs 50.5 apiece, valuing the deal at Rs 8.98 crore, stock exchange data showed.

Promoters owned 40.4% in MVIL as of 30 September and had offered to buy 34.27% stake more through an open offer. But they managed to buy only negligible number of shares in the process that closed 13 October.

With this transaction, they have used the creeping acquisition route to raise their holding.

However, it would be a far cry from the plan to own a majority stake in the firm. Promoters of listed firms can own a maximum of 75% in their companies.

Early this month, the company’s board approved borrowing up to Rs 70 crore from Analjit Singh, promoter and chairman of the firm, without any interest for repayment of existing loan, funding to subsidiaries and other general corporate purposes.

Goldman Sachs that had originally invested in the former group flagship Max India Ltd, had been selling its stake since the firm listed in June. Through two entities it held 6.36% stake as on 30 September, which has almost halved with this transaction.

MVIL’s shares declined 2.82% to close at Rs 50 apiece on BSE in a flat Mumbai market on Tuesday.

MVIL demerger and listing

MVIL shares listed on 22 June. The company is one of the three holding firms formed after the demerger of the erstwhile Max India.

MVIL manages the investment in its manufacturing subsidiary Max Speciality Films and is looking to invest in new sectors, including education, real estate and technology, making it a diversified holding arm, similar to what Max India was before it was spliced up.

Max Financial Services, which focuses solely on the group's flagship life insurance activity through its majority holding in Max Life, is currently awaiting regulatory clearances for a deal where it would merge with HDFC Life Insurance.

The third unit is Max India Ltd, which houses investments in the health verticals, including hospital chain operator Max Healthcare, health insurance JV Max Bupa and Antara Senior Living.

Entry into new sectors

MVIL recently set up a wholly-owned subsidiary Max Estates Ltd, which will undertake real estate development projects, and will also explore investments in other sectors.

It also invested in Azure Hospitality Pvt Ltd, which owns and operates Mamagoto, a mid-scale casual dining restaurant chain for Indian and Chinese street food and an institutional catering service.

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