The private equity arm of investment banking major Goldman Sachs is picking up 9.4 per cent stake in Max India, the Delhi-based company with interests in healthcare and insurance, on the conversion of compulsorily convertible debentures (CCDs). The equity shares are being converted at nearly 30 per cent premium to Max India’s closing price of Rs 166.65 on June 10.
The shares have been allotted to Xenok Ltd, a wholly owned subsidiary of GS Capital Partners VI Fund, L.P, at a share price of Rs 214.75. The share price of Max India was trading at Rs 179.5 at 3 pm on Monday, up by 7.71 per cent.
Analjit Singh-promoted Max India had raised $115 million (about Rs 540 crore) from $20.3 billion GS Capital Partners VI Fund in December, 2009, to expand the company’s interests in insurance, healthcare and specialty plastics businesses.
Max India has funding from investors like the global PE major Warburg Pincus and World Bank’s International Finance Corporation (IFC). While Warburg Pincus made a partial exit in 2009, it still holds over 16 per cent stake in the company. While IFC owns 4.44 per cent stake, Singapore sovereign wealth fund Temasek has also built up 3.47 per cent stake through open market purchases.
For FY11, Max India reported a net profit of Rs 9 crore against the loss of Rs 72 crore in FY10, with consolidated revenues up 3 per cent year-on-year at Rs 7,891 crore. Its group firms include life insurance JV Max New York Life, health insurance JV Max Bupa Health Insurance Ltd, healthcare chain Max Healthcare, clinical research firm Max Neeman Medical International and Max Speciality Films.