The Hindu Business Line : Max Healthcare to raise Rs 75 cr thru equity placement

MAX Healthcare Institute Ltd, a subsidiary of Max India Ltd, is planning to raise an additional Rs 75 crore through an equity placement programme by December to fund its expansion plans.

Speaking to newspersons, Mr Analjit Singh, Chairman and Managing Director, Max Healthcare, said: "We are in talks with a few investors. The interest level in the sector has been very high." This follows the recent preferential allotment of shares made by it to Madison Holding Ltd and Melany Holdings Ltd, registered FIIs belonging to the Warburg Pincus Group, raising Rs 25 crore.

The company has planned a total investment of Rs 500 crore, of which about Rs 200 crore is the debt component.

It has already invested Rs 350 crore in developing five healthcare centres in Delhi, which includes a cardiac care hospital. Others in the pipeline include a centre for neuroscience, a joint replacement hospital and a facility for minor access gastro-intestinal surgeries. However, the company will concentrate on expanding in the National Capital region and adjoining areas and does not see itself moving to other cities in the near future.

Max Healthcare will also revive its plans of setting up clinics. "We had earlier decided to rollback our plans for clinics. But this year, we will open four clinics, with two of them focusing on women," Mr Singh said.

While there are no immediate plans to list the healthcare company on the stock exchanges, Mr Singh said he is not averse to the idea. On the profitability of the hospitals, he said some of the projects are achieving cash break-even. However, he conceded these are long gestation businesses.

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