Max India Ltd, one of India's leading multi-businesses corporate, announced its intent to enter new areas of business after the two recently announced transactions are concluded. Max India is currently in the midst of selling 51 per cent stake in its Health Insurance JV Max Bupa, to leading private equity firm True North.
The process is expected to conclude in six months. The company has also undertaken a transaction which will result in its de-merger into two listed entities. The first entity, created from a merger of Max Healthcare with the KKR backed hospital operator Radiant Life Care, will be India's third largest corporate hospital chain with over 3200 beds & amp; 16 hospitals and will be automatically listed on the Indian stock exchanges.
Max India's other demerged entity, which has currently been named as Advaita, will own the Group's Senior Living business-Antara Senior Living. It will also manage a corpus of over Rs 500 Cr received from the divestment of Max Bupa.
Max Group's sponsor Analjit Singh, who has increased his involvement in Max India by taking on the mantle of Chairman, is looking to start afresh in Advaita by venturing into 1-2 new business areas, which will have adjacency's to the group's latest focus areas of Life Insurance, Real Estate, Senior Care and Lifestyle. Besides being utilized for seeding new businesses, Advaita proposes to utilize its cash reserves to also offer an exit opportunity through a capital reduction process, subject to regulatory approvals, to shareholders who may not be keen on investing in unchartered areas. This will allow such shareholders access to proportionate proceeds from Max Bupa divestment and en-cash their shareholding.
"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. I remain committed to grow Max India and retain my shares in the company", said Analjit Singh, Founder & amp; Chairman, Max Group.
"Our choice of businesses and smart capital management has resulted in a 23 per cent IRR for Max India investors since we went public. This, even when our stock prices are unusually depressed currently. The business portfolio rebalancing will provide fresh impetus to this growth and returns", said Mohit Talwar, Vice Chairman, Max Group and MD, Max India.
The new businesses will be decided within the next year, which is the anticipated time frame for the demerger and listing of New Max India, currently being called Advaita Allied Health Services Limited.
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