Max Healthcare Institute Ltd, which listed last year after merger with KKR-backed Radiant Life Care, on Wednesday said the hospital chain has raised Rs 1,200 crore ($165 million) via a qualified institutional placement (QIP).
The QIP attracted interest from both domestic and foreign investors, said Max Healthcare in a stock exchange disclosure.
The overall allocation to foreign institutional investors was around 43.6% and the balance was for domestic mutual funds and other local investors. As part of the transaction, Max Healthcare issued 61.41 million fresh equity shares of face value Rs 10 each at a price of Rs 195.40 apiece.
It issued the shares to SBI Focus Equity Fund, HDFC Flexi Cap Fund, HDFC MidCap Opportunities and BNP Paribas Arbitrage ODI.
Other investors such as Nomura India Stock Mother Fund, Polar Capital Funds PLC - Healthcare Opportunities Fund and Veritas Asia Fund also subscribed to shares.
Max Healthcare will use the proceeds from the QIP for capital expenditure and working capital needs. It will also use a part of the corpus to expand and increase stake in subsidiaries.
For instance, Max Healthcare was in the final stage of gaining full ownership of Crosslay Remedies Ltd, which operates Ghaziabad-based Max Super Speciality Hospital, Vaishali (formerly Pushpanjali Crosslay Hospital).
Following the QIP, the public shareholding of Max Healthcare stands at 29.54%. Max Healthcare has undergone a big management change over the years after Radiant Life Care, in partnership with KKR, acquired the entity in a multi-tiered deal first announced in 2018.
The new Max Healthcare, which came into being after completion of the merger with Radiant Life Care in 2020, got listed in August last year. After the listing, Radiant Life Care's Abhay Soi, regarded as a turnaround specialist, and KKR and became controlling shareholders in the hospital chain with a stake of a little over 75%.
Notably, the merged entity toppled IHH-owned Fortis Healthcare Ltd to become India's second-largest hospital chain with 17 hospitals and a total revenue of around Rs 4,000 crore.