Max India to explore new lines of business
Max India is set to enter businesses with adjacencies to current group businesses of life insurance, real estate, senior care and hospitality. The company is in the midst of selling 51 per cent stake in Health Insurance JV Max Bupa, to a leading private equity firm True North which is expected to be completed in the next six months.
The company has also initiated a transaction which will result in its demerger into two listed entities. The first entity created from the merger of Max Healthcare with the KKR backed hospital operator Radiant Life Care, will be India’s third largest corporate hospital chain with over 3,200 beds and 16 hospitals and will automatically be listed on the stock exchanges.
Max India’s other demerged entity, which has been named as Advaita will own the Group’s Senior Living Business- Antara Senior Living. It will also manage a corpus of Rs. 500 crore received from the divestment of Max Bupa. Advaita will venture into 1-2 new business areas which will have adjacencies to the Group’s latest focus areas of Life Insurance, Real Estate, Senior Care and Lifestyle. Advaita proposes to utilize its cash reserves to also offer an exit opportunity through Capital Reduction process, subject to regulatory approvals from shareholders who may not be interested in investing in uncharted areas.
On Tuesday, Max India was trading at Rs. 69.3 per share, up by 0.07 per cent on the BSE.