The company modified the terms of options available to the foreign partner New York Life for purchasing an additional 24 per cent stake in Max New York Life Insurance Company, to increase its stake to 50 per cent, he said at a press conference in Mumbai, today.
"This option will be available for a period of eight years for them and will be offered at 10 per cent discount than the market price," said Analjit Singh.
The restructuring was done as part of an understanding among the partners to hold 50 per cent each in the joint venture.
He explained that an option deposit was given by New York Life to Max India, and the company has paid back Rs 175 crore, a week ago. The option deposit will be used to purchase the additional equity.
He said the company was expected to break even by 2011. The company plans to increase the number of life insurance agents from 47,000 to three lakhs and to open 215 offices every year.
The target is to add 900 agency offices and 700 rural offices by 2011-12. The company has planned a capital expenditure of Rs 3,600 crore and the two promotors have already infused about Rs 1,232 crore for the proposed expansion.
He said the company will start a standalone new joint venture health insurance project within 15 months with Bupa Finance of UK.
Bupa will have 26 per cent stake, Max India 50 per cent stake and Analjith and family will have the remaining 24 per cent stake in the new venture.
He said the company also plans to open four new hospitals with an investment of Rs 1,100 crore to double the bed capacity to Rs 1,500 by 2010.
Three new hospitals will come up in the New Delhi capital region and another in Dehradun.
