Money & Banking

New York Life Insurance arm to invest ₹121 cr in Max Ventures

Our Bureau New Delhi | Updated on January 12, 2018 Published on January 09, 2017

Will pick 22.5% stake via preferential allotment

New York Life International Holdings (NYLIH), a subsidiary of US-headquartered New York Life Insurance, will pick a 22.5 per cent stake in Max Ventures and Industries (MVIL) for a consideration of ₹121 crore.

The board of MVIL on Monday gave its nod for making a preferential allotment of 1.55 crore shares at a price of ₹78 a share to NYLIH.

MVIL also proposes to allot share warrants equivalent to 4.76 per cent of the post-issue share capital of the company to the promoter group, assuming full conversion of the warrants.

These share warrants will be issued at ₹78 a warrant aggregating to ₹26.9 crore and will be convertible into equity shares within 18 months. This would take the shareholding of the promoter group in MVIL to 38.02 per cent on fully diluted basis.

Speaking of the association, Analjit Singh, Founder and Chairman Emeritus of the Max Group and Chairman of MVIL, said, “Max has a long-standing relationship with New York Life. The company was our first major partner when Max was reinvented as a service-oriented company in 2001. Hence, it is very special to have them at the take-off stage of MVIL to continue and grow our valuable relationship with New York Life.”

Sahil Vachani, Managing Director and CEO of MVIL, said the investment will bolster MVIL’s journey. “The funds coming in will be used to invest in MVIL’s focus areas including manufacturing, real estate development and education, and will provide intellectual and financial capital to promising and proven early-stage organisations.”

Published on January 09, 2017
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