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Grapevine: Bain-Sunil Munjal to buy into Max Financial; Carlyle to exit Visionary
Photo Credit: VCCircle

US private equity buyout group Bain Capital is looking to join hands with Sunil Munjal’s Hero Corporate Services to buy a controlling stake in Max Financial Services from Analjit Singh, people aware of the matter told The Economic Times.

The consortium could end up holding up to 54.3% stake in Max Financial upon successful open offer to minority shareholders. At first, the investors are looking to acquire 28.3% stake from Singh.

They may also consider the option of buying just below 26% stake to avoid triggering the mandatory open offer, and replacing Singh as the promoter.

One of the persons said Hero Corp aims to complete the transaction by the end of this month or early February.

Persons close to Singh said that ideally he would like to retain a small stake to enjoy any future upside. In case Singh exits fully, he will be able to raise around Rs 4,033 crore at the current market price.

Meanwhile, private equity firm Carlyle Group is looking to sell its stake in Visionary RCM Infotech (India) Pvt. Ltd, two people aware of the development told Mint.

Carlyle bought a majority stake in the company in December 2017 for $65 million.

“Carlyle is looking to sell its entire stake to strategic and private equity buyers at a valuation of up to $300 million (Rs 2,130 crore at current exchange rate),” said one of the persons.

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