Max India raises Rs1,000-cr through QIPs

New Delhi: Max India Ltd has raised Rs1,000 crore through a qualified institutional placement (QIP), which was subscribed more than 2.3 times, the company said. It has also announced a Rs300 crore investment from the World Bank''s funding arm, International Finance Corporation, Washington, to expand its healthcare business.

Addressing a press conference here on Wednesday, B. Anantharaman, joint managing director, Max India Ltd, said: "The company plans to use the net proceeds from this issue to meet its additional funding requirements in line with its strategic business plans to grow its existing businesses. A portion of the proceeds will also to be used for general corporate purposes including acquisitions and investments in new ventures."

The QIP raises the foreign institutional investment holding in the company to 39 per cent from 26 per cent earlier.

Regarding Max New York Life (MNYL), Anatharaman said they hoped to add another 400 new offices to their existing 165 across the country in the next two to three years and an additional 50,000 agents to their current strength of 25,000 agents.

The IFC investment, which comes with IFC acquiring about 3.4 per cent stake in Max Health care Institute for about Rs50 crore, will fund three new hospital projects.