Max India Ltd said it will venture into new areas of businesses after it completes divesting its stakes in healthcare and insurance companies that were announced recently.
The company expects to enter areas related to the group's current businesses of life insurance, real estate, senior care and hospitality, said Max India in a stock market disclosure.
Max India is currently in the midst of selling its 51% stake in healthcare insurance joint venture -- Max Bupa Health Insurance Co -- to private equity firm True North. Britain-based Bupa, the joint venture partner in Max Bupa, will remain invested in the insurer.
Max India is also undertaking a transaction that will result in its demerger into two listed entities. The first entity will be created from the merger of its hospital chain Max Healthcare with KKR-backed hospital operator Radiant Life Care. Radiant had initially in September last year agreed to buy the entire 49.7% stake of South Africa-headquartered Life Healthcare Group Holdings Ltd in Max Healthcare. Subsequently, in December, a multi-tiered deal involving Radiant's merger with Max Healthcare was announced, giving the KKR-backed company a majority stake in the merged entity.
The other demerged entity -- Advaita Allied Health Services Ltd -- will own the company's senior living business -- Antara Senior Living. Advaita will also manage a corpus of over Rs 500 crore that it expects to receive from the Max Bupa transaction.
Besides seeding new businesses, Advaita will also offer exit opportunity to public shareholders.
The new businesses will be decided next year by which the demerger and listing of Advaita, which will be called New Max India, will be completed, the disclosure added.
“Our aim is to recreate the Max India story all over again by seeding high potential businesses and doing them the Max way, which will likely create significant value for those who stay invested with us," said Analjit Singh, founder and chairman, Max Group.