Max Ventures and Industries (MaxVIL) part of Analjit Singh-led Max Group today announced a Rs 147.9 crore fund raising plan, which includes sale of 22.51 per cent stake to a subsidiary of New York Life Insurance Company for Rs 121 crore.
As part of the plan, the company will also raise Rs 26.9 crore by issuing warrants to the promoter group equivalent to 4.76 per cent of the post-issue share capital of the company on a fully diluted basis.
The board of directors of the company has approved issuance of 15,523,870 shares of the company on preferential basis to New York Life International Holdings Ltd at a issue price of Rs 78 per share, MaxVIL said.
"Subject to MaxVIL shareholder approval, a subsidiary of New York Life Insurance Company will acquire a 22.51 per cent equity stake in MaxVIL at an offer price of Rs 78 per share aggregating to Rs 121 crore on a diluted basis and will be entitled to one nominee director to the Board of MaxVIL," the company said in a statement.
Commenting on the development, Max Group Founder & Chairman Emeritus Analjit Singh said: "Max has a long standing relationship with New York Life... Hence it is very special to have them at the take off stage of MaxVIL to continue and grow our valuable relationship with New York Life."
MaxVIL Managing Director & CEO Sahil Vachani said the funds coming in will be used to invest in MaxVIL's focus areas including manufacturing, real estate development and education.
The company further said the share warrants issued to the promoter group will be at a price of Rs 78 per warrant aggregating to Rs 26.9 crore and will be convertible into equivalent equity shares within 18 months, taking the shareholding of the Promoter Group in MaxVIL to around 38.02 per cent on fully-diluted basis.
MaxVIL is the newest entity in the Max Group of companies that came into existence after the erstwhile Max India Group was demerged into Max Financial Services Ltd, Max India Ltd and Max Ventures and Industries Ltd (MaxVIL).
MaxVIL has four distinct business verticals Max Speciality Films (Manufacturing), Max Estates (Real Estate), Max Learning (Education) and Max I. (i.E. To intellectual and financial support).
Max Ventures and Industries is the holding company for speciality packaging films firm Max Speciality Films.
Shares of Max Ventures and Industries today closed at Rs 67.05 per scrip on BSE, up 3.95 per cent from its previous close.
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