Goldman Sachs to invest in Max India.

Posted on: September 17th, 2015 by admin No Comments

Goldman Sachs to invest in Max India.

Promoter Group of Max India will bring in an additional Rs. 175 crore
Funding to be used for expansion of existing businesses

Max India, a leading multi-business corporate, today announced that it had garnered a high value investment of $115 million (about Rs. 540 crore) from the private equity arm of global investment bank Goldman Sachs. It adds to the set of esteemed investors in Max India, (comma) such as IFC, Warburg Pincus, Fidelity, HSBC, Janus, Federated Kaufmann and Prudential.

The investment will be through Fully & Compulsory Convertible Debentures (FCD) carrying a coupon rate of 12% per annum. These FCDs will be converted into equity shares of Max India in 15 months at Rs. 216.75 per share. Additionally, the Promoter Group of Max India will be bringing in Rs. 175 crore in the Company. These investments will be used to fund the Company’s expanding life insurance, healthcare and health insurance businesses; Max New York Life, Max Healthcare and Max Bupa. Goldman Sachs will have 9.4% stake in Max India after conversion of these FCDs and promoter warrants. The firm will get a seat on the Max India Board, though it will not have any affirmative rights.

The Promoter Group of Max India is being issued 2 million warrants of face value of Rs.867 each, for an aggregate consideration of Rs.173.2 crore, representing approximately 3% of the post issued equity share capital of the Company on conversion of warrants. The promoters will be investing 50% of the warrant money upfront against the stipulated minimum of 25%. Balance 50% will be invested within 18 months.

A principal player in the financial services space, Goldman Sachs has an exceptionally successful history of making long-term investments in highly capital intensive businesses. The firm also has the requisite expertise in the life insurance business through an investment in a leading Chinese insurance firm, Ping An Insurance.

Max India’s continuing commitment to Service Excellence, strong business performance and a transparent Board managed governance model, continues to assist the Company in gaining trust from first-rate investors.

About Max India

Max India Limited is a multi-business corporate, driven by the spirit of Enterprise and focused on People and Service oriented businesses. It ‘Protects Life’ through its Life Insurance subsidiary Max New York Life, a Joint Venture between Max India and New York Life, a Fortune 100 company; ‘Cares for Life’ through its Healthcare company, Max Healthcare, a subsidiary of Max India Limited; ‘Enhances Life’ through its Health Insurance company, Max Bupa Health Insurance, a Joint Venture between Max India and Bupa Finance Plc., UK, which is set to launch after statutory approvals; and ‘Improves Life’ through its Clinical Research business, Max Neeman, a fully owned subsidiary of Max India. From its past, Max India continues its interest in Speciality Films manufacture for the packaging industry through Max Speciality Films (MSF).

For more details contact:

Nitin Thakur

Head – Communications
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 196
Cell # +91 9873347428+91 9873347428
E-mail: nthakur@maxindia.com

Rahul Gossian

Communications Specialist
Max India
Max House, Okhla – III,
New Delhi-110 020
Tele # 2693 3601-10 extn. 145
Cell # +91 9873154228+91 9873154228
E-mail: rgossain@maxindia.com