Max Healthcare Institute Ltd (MHC), India’s second largest private hospital chain operator by revenue in Fiscal 2020 announced the successful completion of its Qualified Institutions Placement (QIP). MHC raised INR 1,200 Cr (approx. USD 165 Mn) through its QIP, which saw participation from highly reputable global and domestic investors. MHC has accordingly issued 6,14,12,482 fresh equity shares of face value of INR 10 per equity share at a price of INR 195.40 per equity share. Post the QIP, the issued and subscribed equity share capital of MHC stands at 96,59,45,006 equity shares.
The Issue saw keen interest from global and domestic investors including international and domestic mutual funds, insurance companies and other investors. The overall allocation to foreign institutional investors is approximately 43.6%, with balance 56.4% to domestic mutual funds and other domestic investors.
MHC proposes to utilize the net proceeds for meeting the capital expenditure and working capital requirements, including expansion of capacity, increasing stake in existing/future subsidiaries, etc. MHC may also use part of the proceeds for repayment of debt and for general corporate requirements or any other purposes as maybe permissible. Pursuant to this Issue, the public shareholding of MHC stands at 29.54%. However, this includes 4.82%, which is not currently considered for compliance towards minimum public shareholding threshold under SEBI regulations for listed companies.
Abhay Soi, Chairman and Managing Director, Max Healthcare, said, “We would like to thank investors for their overwhelming response towards our QIP. With this, we have fortified our balance sheet to tap growth opportunities and also strengthened our investor base with blue chip domestic mutual funds and global long only funds. We are delighted with the response to the QIP, which is also a testimony to the robustness of our business model. MHC will continue to provide high-end medical care for our patients by investing in cutting-edge clinical technologies, infrastructure, clinical and management talent.”
Kotak Mahindra Capital Company Ltd., Citigroup Global Markets India Pvt. Ltd, Credit Suisse Securities (India) Pvt. Ltd. and HSBC Securities and Capital Markets (India) Pvt. Ltd. acted as book running lead managers. The legal counsel to MHC was AZB & Partners. The legal counsel to the book running lead managers was Linklaters Singapore Pte. Ltd. (as to United States Federal Securities Law) and Shardul Amarchand Mangaldas & Co. (as to Indian Law). Deloitte Haskins & Sells are the statutory auditors of MHC.
