Max India founder Analjit Singh will infuse Rs 300 crore into the company in lieu of warrants at Rs 154.76 a share.
The company will use a significant part of the money raised to buy 3.75 per cent stake in its flagship Max Healthcare (MHC) from World Bank arm International Finance Corporation (IFC).
IFC owns 7.5 per cent in Max Healthcare.
Max India said it will issue over 1.93 crore warrants to Singh, translating to about 4 per cent.
Sponsors' shareholding in the company will thus increase to 45.12 per cent as a result of this transaction, Max India said in a statement.
IFC's balance 3.75 per cent stake in Max Healthcare will be bought by South Africa's second largest hospital chain Life Healthcare Group, the venture partner of Max India in Max Healthcare.
"The total consideration for the stake will be Rs 423 crore, translating to Rs 105 per share of MHC," Max India said.
Post acquisition, Max India's and Life Healthcare's stake in MHC will increase to 49.7 per cent each.
Max group President Rahul Khosla said: "Max India's stake increase in Max Healthcare reflects our confidence in company's potential."
Max India Managing Director Mohit Talwar said the capital infusion reflects sponsors' confidence in growth in health segment.
"The increase in shareholding reflects Life Healthcare's continued commitment to the Indian healthcare market and a furthering of the partnership with Max India," said Andre Meyer, CEO, Life Healthcare.
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