Private equity major KKR has sold its entire 27 percent stake in Max Health
and raised Rs 9,290 crore in the process. A total of 26 crore shares changed hands at Rs 355 apiece in the deal.
Abhay Soi, chairman and managing director of Max Healthcare, told CNBC-TV18 that GIC and Capital Group were among the new investors.
"We are happy to have attracted very good investors in the form of the government of Singapore through GIC, Capital Group, which is a $3 trillion group and, the best of marquee investors through the sell-down," he said.
The stake sale, via a block deal, was executed by Kalyan Investments, which is a KKR-affiliated company, and had invested in the healthcare company.
KKR had two board seats, and they will be stepping down as part of a shareholders agreement. "We will be nominating other non-independent non-executive members as whole-time directors," Soi said.
The stock opened positively on Tuesday on the back of this news and, at the time of publishing, was up close to 2.5 percent.
KKR has sold its stake at a discount of 3.3 percent to the current market price.
HSBC has maintained a "buy" call on the stock but cut its target price to Rs 425 from Rs 435 per share. The brokerage remained positive on core hospitals business and said that Max should have sustained growth in its non-COVID portfolio.
According to Soi, the company was happy to have multiple partners rather than one partner through private equity. "It's an expensive company... So, every percent cost me about Rs 360 crore, but over a period of time, you will see us climbing up on stake," he told CNBC-TV18.
A week back, Max Healthcare reported its first quarter performance, where its consolidated net profit increased by 12 percent to Rs 229 crore for the June quarter, driven by annual price revision and normalisation of patient footfalls.
The net revenue during the period under review rose to Rs 1,393 crore as compared with Rs 1,322 crore in the April-June quarter of the last financial year.
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(Edited by : Abhishek Jha)
First Published: Aug 16, 2022 10:31 AM IST
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