The stock of Analjit Singh-promoted Max India rose today on unconfirmed media reports that Warburg Pincus, a foreign fund, was close to acquiring a 20 per cent stake in the wholly owned healthcare subsidiary, Max Healthcare.
On the BSE, the stock hit a high of Rs 89 but settled at Rs 87.95, up 4.64 per cent over Friday's close. About 35,800 shares changed hands. Between July 2 and August 2, the stock declined by 30 per cent from Rs 119.90 to Rs 84.05.
Recently, Warburg Pincus had announced that its had earmarked $500-800 million for India, to be spread over three years. The fund said it was eyeing IT-enabled services and financial services sectors as key investment areas.
Max Healthcare has envisaged an investment plan of Rs 400-450 crore, with a mix of debt and equity, till 2005. The parent has so far invested close to Rs 100 crore in the healthcare firm.
As on June 31, 2002, promoters held 51 per cent stake in Max India, while public and institutions held 27 per cent and 2 per cent, respectively.
Set up in 2001, Max Healthcare has seven healthcare facilities. The firm plans to set up 23 more primary care centres (Dr Max Clinics), three day-care surgery centres (Max Medcentres) and two hospitals within the next three years.
Till early last month, Max Healthcare, till then a division of Max India, was recast as a fully-owned independent subsidiary of Max India. The new company is called Max Healthcare Institute Pvt Ltd.
