Max India joint managing director B. Anantharaman (right) with Donald Skinner, country head, the US, in New Delhi on Wednesday. Picture by Prem Singh

New Delhi, June 20: Max India has raised Rs 1,000 crore through a qualified institutional placement (QIP). It plans to use the fund to expand its insurance and healthcare businesses.

The company will also get Rs 300 crore from the International Finance Corporation (IFC), Washington, to fund the second phase of expansion of its healthcare business.

The issue raises the FII holding in the company to 39 per cent from 26 per cent.

The placement was made to 24 investors in the US, Europe and Asia.

“Strong sectoral growth prospects, increasing awareness of the Indian economy and robust performance of our life insurance and healthcare business attracted these investors,” said B. Anantharaman, joint managing director of Max India.

He said most of the funds would be used to expand the insurance business. The money from IFC will be used to expand the healthcare business. “We will set up three hospitals outside Delhi. Work on the first in Dehradun has already begun. The other two will be set up in other cities,” he added.

The company has issued 41,666,660 new shares at a price of Rs 240 each. Each Max India share has a face value of Rs 2.

These shares constitute 18.8 per cent of the fully diluted equity base of the company. Around 40 per cent of the allocation went to the US-based investors. The remainder was split equally between Asia and Europe. Max India has almost 100 per cent CAGR of its life insurance business since inception.