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Saturday, Feb 14, 2004

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Corporate - Preferential Allotments

Max India offers 10.71 pc stake to ChrysCapital

Our Bureau

New Delhi , Feb. 13

MAX India today decided to offer 10.71 per cent stake in the company to ChrysCapital on a preferential basis amounting to Rs 49.82 crore.

The Board of Directors decided to issue 27.67 lakh equity shares of Rs 10 each at a premium of Rs 170 per share.

According to Mr B. Anantharaman, Group Finance Director, "This marks the second phase of the group's restructuring exercise. The company has substantially retired debt and infused over Rs 380 crore in its life insurance and healthcare businesses." The proceeds of the preferential allotment are expected to further strengthen the balance sheet of the company.

Max India has a paid up capital of Rs 23 crore with reserves of over Rs 425 crore. During the third quarter the company registered a profit before tax of Rs 29 crore. Mr Analjit Singh, Chairman, Max Group, added, "The proposed investment by ChrysCapital demonstrates the strong business fundamentals of the company as it builds the country's top quartile private life insurance business through Max New York Life Insurance Company and an integrated healthcare delivery business in the Capital through Max Healthcare, to be a dominant Healthcare player in the North."

As part of the first phase of its restructuring exercise, Max India had exited its pharmaceutical and medical transcription businesses recently. However, it continues to hold a 10 per cent stake in Hutchison Max Telecom, operating cellular telephony services in the Mumbai circle.

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