Goldman Sachs unit picks take 9 per cent in Max India

Insurer and hospital operator Max India today said its board had allotted shares to a Goldman Sachs affiliate. The company's shares rose as 10 per cent on the news.

Reuters quoted Mohit Talwar, director, corporate development, as saying the Goldman Sachs unit picked up a 9.1-per cent stake in Max India for about Rs522 crore following conversion of debentures.

According to Max, the board allotted around 24 million equity shares of Rs2 each at a Rs214.75 per share premium on conversion of compulsorily convertible debentures to Xenok Ltd, a unit of GS Capital Partners VI Fund.

According to Talwar the investment by Goldman Sachs fund showed its long-term commitment.

Analjit Singh-promoted Max India had raised around Rs540 crore from GS Capital Partners VI Fund in December, 2009, to fund expansion of the company's interests in insurance, healthcare and specialty plastics businesses.

Max India has received funding from investors including the global PE major Warburg Pincus and World Bank's International Finance Corporation (IFC) and Warburg Pincus made a partial exit in 2009, it still has a 16-per cent stake in the company.

While IFC has a 4.44-per cent stake, Singapore sovereign wealth fund Temasek also has built up a 3.47 per cent stake through open market purchases.
 
For FY11, Max India posted a net profit of Rs 9 crore against the loss of Rs72 crore in FY10, with consolidated revenues up 3 per cent year-on-year at Rs7,891 crore.

The group includes firms like life insurance JV Max New York Life, health insurance JV Max Bupa Health Insurance Ltd, healthcare chain Max Healthcare, clinical research firm Max Neeman Medical International and Max Speciality Films.