Max India raises Rs 1,000 crore through QIP

New Delhi, Jun 20 (UNI) Max India Ltd today said it has raised Rs 1,000 crore through Qualified Institutional Placement (QIP), which was subscribed 2.3 times by broad based investors, spread globally.

''We chose to go for a global road show in order to spread thematic awareness about the core sectors we are in and also share robust growth and impressive progress made by each of our businesses with a large number of investors,'' company Joint Managing Director B Anantharaman said in a statement.

Investors having long-term horizon subscribed around 80 per cent of the offering.

''We met over 100 potential investors over the course of theroad show in India, Singapore, Hong Kong, UK, Germany and North America and one out of every four investors we met submitted a bid,'' said Mr Anantharaman.

Strong sectoral growth prospects, increasing awareness of the Indian economy coupled with the robust performance of our Life Insurance and Healthcare businesses attracted the attention of these investors, he added.

The QIP raises FII holding in the company to 39 per cent from around 26 per cent earlier. Max India has an investment limit of 49 per cent for FIIs.

Max India plans to use the net proceeds from this issue to meet its additional funding requirements in line with its strategic business plans to further grow each of its existing businesses, said a statement.

A portion of the proceeds is also expected to be used for general corporate purposes including acquisitions and investments in new ventures.

CLSA acted as the sole book runner and global coordinator for the issue.

The company has issued 41,666,660 new shares of the face value of Rs 2 each and at a premium of Rs 238 per share making the price Rs 240 per share. The new shares aggregate 18.8 per cent of the fully diluted equity base of the company.

About 40 per cent of the allocation went to the US based investors while the remainder was split evenly between Asia and Europe based investors.

As per SEBI regulations governing QIPs, the shares can be placed with only 49 investor accounts (including any sub-account). The final allocation of shares was made by Max India to a group of 24 investors represented by 42 investment accounts.

Max India is a multi-business corporate, driven by the spirit of Enterprise, focused on knowledge, people and service oriented businesses of Healthcare (Max Healthcare), Life Insurance (Max New York Life Insurance), and Clinical Research (Neeman Medical International).

Max India's other businesses are Specialty Plastic Products for the packaging industry (Max Speciality Products) and Healthcare Staffing (Max HealthStaff).

Max New York Life (MNYL) is a joint venture between New York Life and Max India Limited.

UNI