| Singh: Money matters
Mumbai, Feb. 13: ChrysCapital will pick up around 10.71 per cent of the Delhi-based Max India Ltd at Rs 180 per share for a total consideration of Rs 49.82 crore.
Max India today informed the bourses that its board has approved issuing 27.67 lakh shares — representing 10.71 per cent of its equity — to the venture capital firm’s Mauritius arm in a preferential allotment.
The company will convene an extraordinary general meeting on March 12 to secure the approval of shareholders.
According to observers, funds from the allotment could be used to part-finance the company’s expansion plans.
Max India straddles several businesses, including healthcare, life insurance, speciality products and information technology.
The company posted a net profit of Rs 55 lakh in the quarter ended September 30 compared with Rs 77 lakh in the year-ago period. Total income fell from Rs 50.35 crore to Rs 33.83 crore in the reporting period.
In healthcare, the company has been following an integrated approach to provide primary care (Dr Max Clinics), secondary (Max Medcentre and Secondary Care Hospital) and tertiary (Max Multi-Speciality and Super Speciality Hospitals).
It is planning to expand its operations to areas other than New Delhi, where it had earlier committed an investment of over Rs 400 crore.
Its joint venture with New York Life offers individual and group life insurance solutions. The venture has a distribution network of more than 28 offices and representatives spread across 21 cities in India.
On the other hand, Max Speciality Products is the company’s fully-owned business unit, specialising in the manufacture of biaxially-oriented polypropylene (BOPP) films and various other kinds of thermal plastic films.
Last year, the company’s board approved divestment of 1.08 crore shares representing the entire 65 per cent stake held in Max Healthscribe Ltd in favour of its joint venture partner, US-based Healthscribe Inc, for a total consideration of $10.34 million.
Analjit Singh, who founded Max India, led the company into bulk pharmaceutical production followed by telecom services, packaging, manufacturing electronic components and speciality plastic products. In 1998, Singh commenced restructuring of the company, identifying healthcare, life insurance and information technology as its focus areas.