Promoters of Analjit Singh-led Max Group plan to raise ₹2,300 crore by selling their stakes in the group’s healthcare and financial services companies, two people aware of the matter said, adding they have already sold prime land at London’s Mayfair for ₹800 crore.
With the stake sales, the promoters aim to pay off all their debt, which stood at ₹3,400 crore in December 2019, the people cited above said on condition of anonymity. They are also trying to sell some more overseas real estate and hospitality assets.
“We are fully committed to reduce the debt considerably within the current year. We have been working towards it in a structured manner. Our divestment of some private real estate in the UK recently allowed us to trim the debt to quite an extent. We plan to take some significant actions in the near future to become almost debt-free,” a spokesperson for the Singh family said.
The promoters are looking to sell 10-15% of their 28.31% stake in Max Financial Services Ltd for around ₹1,500 crore, the first person said.
“The stake sale will be a secondary market deal. It is likely to be done through a block or bulk deal on the stock exchange. Potential buyers are being shortlisted,” this person added.
Axis Capital has been hired as the banker for the deal, the people cited above said. Axis Capital declined to comment.
Singh is also planning to sell his residual stake in Max Healthcare. “After the demerger of Max Healthcare from Max India, Analjit Singh will be left with an around 7% stake in Max Healthcare (which will have Radiant and KKR as promoters). The listing of Max Healthcare is likely to happen within two months,” said the first person, adding that the promoters are looking to raise around ₹800 crore.
In December 2018, KKR-backed hospital management firm Radiant Life Care announced the acquisition of a majority stake in Max Healthcare through a merger to create a combined entity valued at ₹7,242 crore.
