Max India Ltd is in talks with private equity (PE) firms to sell 5-10% stake in its subsidiary Antara Assisted Care Services Ltd, two people aware of the development said.
Max India, part of the $4 billion Max Group, is seeking a pre-money valuation of ₹2,000 crore for the wholly-owned unit, the people said on condition of anonymity.
Antara has two lines of businesses–Assisted Care services, including Care Homes, Care at Home, MedCare Products and AGEasy; and independent residences for seniors. The company is in the process of setting up multiple communities and care facilities across different regions of India.
“Antara, which has multiple lines of businesses all targeted towards seniors above the age of 55 years, is growing fast. While its real estate projects have seen good traction, the company wants to expand its direct-to-consumer (D2C) service platform AGEasy; hence, they are looking to raise ₹140-200 crore,” one of the two people said on condition of anonymity.
AGEasy was launched in August last year as a new-age holistic D2C platform to help seniors manage common chronic conditions. It offers customized health and wellness solutions based on expert advice. It claims to offer a unique suite of products and service-based solutions including pain relief products, fall detection smartwatches, joint supplements and comfort knee braces, among others.
In response to a query, a company spokesperson said, “Antara Senior Care is currently well-capitalized to fund its growth and expansion plans.”
Antara clocked a revenue of ₹174 crore in FY23, compared to ₹16.4 crore in FY22. Its net loss stood at ₹8 crore in FY23, though it turned Ebitda-positive during the last fiscal.
Shares of Max India closed at ₹207.15 on Thursday, up 2% from the previous close. The company’s shares hit a 52-week high in January. Some of its top investors include Habrok, New York Life, Nomura, TVF and Porinju Veliyath.
In the Care Homes business, Antara’s first facility in Gurugram provides long-term care to seniors who require constant medical and nursing supervision, and short-term care services for the recuperation of seniors. Its Care at Home services provide well-equipped and trained professionals offering care to seniors at their homes. The MedCare product services vertical is a one-stop platform for the daily medical equipment needs of seniors.
A report from real estate consultancy Anarock in 2020 said there has been a proliferation of senior living ventures in recent years, primarily on the outskirts of major urban centres and in tier II and III cities throughout the country. Notable locations around Tier I cities include Bhiwadi in the NCR, Neral in Mumbai, Talegaon in Pune, and Devanahalli in Bengaluru.
Within the spectrum of ongoing projects, some are exclusively tailored for seniors aged 55 and above. Conversely, others feature designated senior-specific facilities within select blocks or towers.
Antara’s expansion initiatives extended to South India in 2023, alongside the announcement of plans to invest ₹300 crore in senior homes across India over the next 3-4 years.
The senior living industry, valued at over $10 billion, is projected to grow at over 10% CAGR from 2022 to 2027, according to research firm Mordor Intelligence. A report from the United Nations Population Fund indicates that the Indian population aged 60 and above is anticipated to witness a twofold increase, reaching 20.8% (34.7 crore) by 2050 from 10.5% (14.9 crore) in 2022. Moreover, projections suggest that by the close of the century, the elderly demographic will encompass more than 36% of the country’s total population.
