Max Healthcare raises Rs 1,200 through QIP, sells shares at Rs 195.4 apiece

Max Healthcare proposes to utilise the net proceeds for meeting the capital expenditure and working capital requirements, including expansion of capacity, and increasing stake in existing and future subsidiaries.

March 10, 2021 / 07:16 PM IST
Max Healthcare Institute | The company closed its QIP issue and finalised issue price at Rs 195.40 per share.

Max Healthcare Institute | The company closed its QIP issue and finalised issue price at Rs 195.40 per share.

 
 
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Max Healthcare Institute, India’s second largest private hospital chain operator by revenue, said it had raised Rs 1,200 crore through Qualified Institutional Placement (QIP).


Max Healthcare said it saw participation from global and domestic investors including international and domestic mutual funds, insurance companies and other investors. The overall allocation to foreign institutional investors is approximately 43.6 percent, with balance 56.4 percent to domestic mutual funds and other domestic investors.

Max Healthcare issued 6,14,12,482 fresh equity shares of face value of Rs 10 per equity share at a price of Rs 195.40 per share.  Post the QIP, the issued and subscribed equity share capital of MHC stands at 96,59,45,006 equity shares. The QIP opened on March and closed on March 9.

Max Healthcare proposes to utilise the net proceeds for meeting the capital expenditure and working capital requirements, including expansion of capacity, and increasing stake in existing and future subsidiaries.


Max Healthcare also plans to use a part of the proceeds for repayment of debt. Pursuant to this issue, the public shareholding of Max Healthcare stands at 29.54 percent,  however, this includes 4.82 percent, which is not currently considered for compliance towards minimum public shareholding threshold under SEBI regulations for listed companies.

“With this, we have fortified our balance sheet to tap growth opportunities and also strengthened our investor base with blue chip domestic mutual funds and global long only funds," said Abhay Soi, Chairman and Managing Director of Max Healthcare said.

Max Healthcare has a network of 12 hospitals and 4 medical facilities in North and West India.

Shares of Max Healthcare gained 0.77 percent to close at Rs 201.60 on BSE on March 10.
Viswanath Pilla is a business journalist with 14 years of reporting experience. Based in Mumbai, Pilla covers pharma, healthcare and infrastructure sectors for Moneycontrol.
first published: Mar 10, 2021 07:16 pm

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