[Funding alert] Hospital chain operator Max Healthcare raises Rs 1200 crore from global, domestic investors
According to Max Healthcare, the proceeds will be used for meeting its capital expenditure and working capital requirements.
Wednesday March 10, 2021,
2 min Read
Private hospital chain operator Max Healthcare Institute Ltd (MHC) raised Rs 1,200 crores through its qualified institutional placement (QIP). The round saw participation from global and domestic investors.
According to the official statement, MHC has issued 6,14,12,482 fresh equity shares at a price of Rs 195.40 per equity share. MHC revealed that post QIP, its issued and subscribed equity share capital now stands at 96,59,45,006 equity shares.
“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,” said Abhay Soi, Chairman and Managing Director at Max Healthcare.
According to the hospital chain operator, the overall allocation to foreign institutional investors stand approximately at 43.6 percent while 56.4 percent has been allocated to domestic mutual funds and other domestic investors.
MHC revealed that the funds will be deployed for meeting the capital expenditure and working capital requirements, including the expansion of capacity, increasing stake in existing/future subsidiaries among others.
It revealed that it may also use a part of the fund for repayment of debt and for general corporate requirements or any other purposes as permissible.
“Pursuant to this issue, the public shareholding of MHC stands at 29.54 percent. However, this includes 4.82 percent, which is not currently considered for compliance towards minimum public shareholding threshold under SEBI regulations for listed companies,” the statement noted.
According to MHC, the QIP opened on March 4th and closed on March 9th, and saw keen interest from global and domestic investors including international and domestic mutual funds, insurance companies, and other investors.
Edited by Anju Narayanan