Analjit Singh-owned insurance and healthcare company Max India is raising Rs 150 crore through a preferential allotment of shares to International Finance Corporation (IFC), the private sector investment arm of World Bank. A person familiar with the development said, IFC will pick up close to 4.4% stake in Max India at Rs 145 per share.
Max India board will decide the proposal on Friday, the company informed the BSE without disclosing how much stake IFC is slated to buy. The promoters currently hold 35% in Max India, while private equity firm Warburg Pincus owns 22% stake.
Max India’s founder and chairman Analjit Singh told ET: “The fund infusion will meet the company’s financing requirements as of now. This investment will help the company going ahead with a more aggressive fund raising programme at an appropriate time.”
This is the second round of investment from IFC into the Max Group. In 2007, IFC had invested Rs 300 crore in Max Healthcare, the group’s healthcare company and a subsidiary of Max India. Shares of Max India slipped 1.5% to Rs 144.3 on Wednesday. The proceeds raised from IFC would be used to fund Max India’s expansion of healthcare and insurance business.
Source: Economic Times