Max India raises Rs 1,000cr via QIP

Max India has raised Rs 1,000 crore through a qualified institutional placement (QIP), which will be used to fund the expansion of its insurance and healthcare business.

The company will also be getting Rs 300 crore from International Finance Corporation (IFC), Washington to fund its second phase of expansion of its healthcare business.

The QIP raises FII holding in the company from 26% to 39%, and was made to a group of 24 investors spread across United States, Europe and Asia, represented by 42 investment accounts.

"Strong sectoral growth prospects, increasing awareness of the Indian economy coupled with robust performance of our life insurance and healthcare business attracted the attention of these investors," said B Anantharaman, joint managing director, Max India.

He added that a majority of the QIP funds will be used for expansion of the insurance business. "We will use the funds from IFC for expansion of our healthcare business. We will be setting up three hospitals outside Delhi. The work on the first one has already started at Dehradun. We are looking at other cities for the rest," Anantharaman said.