Max India Limited to list tomorrow; opportunity to invest in high-potential healthcare and allied services businesses
13th July 2016, New Delhi
Max India Limited, one of the three new holding companies formed after the demerger of the erstwhile Max India Limited, will list and start trading on the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE) on 14th July 2016. The listing will unlock value for the shareholders of erstwhile Max India allowing them to trade in a stock which manages investments in high-potential Health and Allied services businesses.
The new ‘Max India Limited’, which is the holding company of Max Healthcare, Max Bupa Health Insurance and Antara Senior Living, will be the third company to start trading on the bourses after the demerger of the erstwhile Max India. Max Financial Services and Max Ventures and Industries have already started trading ex-demerger on 27th January and 22nd June, 2016 respectively.
Max Healthcare and Max Bupa Health Insurance are joint ventures (JV) with global leaders, Life Healthcare (South Africa) and Bupa Finance Plc. (UK), respectively. These businesses have well-entrenched positions in their respective categories, and are recognized for their outstanding service standards. Max India owns and actively manages a 45.95% per cent stake in Max Healthcare, a 51% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.
Since 2011, Max Healthcare’s revenues have grown at a CAGR of 26% and the company turned profitable in FY2016 reporting an EBITDA of Rs 215 Cr. and a Profit after Tax of Rs. 10 Cr. In the past one year, the company has undertaken significant expansion efforts including two large acquisitions in the Delhi/NCR region. In May 2015, the company acquired a 78% stake in Pushpanjali Crosslay Hospital and in October 2015, Max Healthcare acquired a 51% stake in marquee South Delhi-based Saket City Hospital from Smart Health City Pte Ltd,. The company plans to expand the Saket City Hospital facility by adding 900 beds over the next few years, thereby expanding its capacity to 1200 beds. Combined with Max Healthcare’s existing and contiguously located flagship facility (Max Super Specialty Hospital – Saket), Max Healthcare will have a footprint of more than 2,000 beds in the heart of South Delhi.
Max India’s second operating company, Max Bupa, has registered a cumulative average growth rate of 80% in its Gross Written Premium (GWP) since its inception in 2010. The company reported GWP of Rs. 476 Cr. in FY2016, growing 28% over the previous year. Max India’s JV partner Bupa, a leading international healthcare group, recently acquired an additional stake in Max Bupa, increasing their shareholding from 26% to 49%. Max Bupa also recently tied-up with Bank of Baroda for a bancassurance corporate agency agreement. Under this agreement, Max Bupa will now be able to offer its comprehensive health insurance offering to the diverse customer base of Bank of Baroda across the country. Max Bupa already has bancassurance arrangements and strategic alliances with leading institutions such as Standard Chartered Bank, Federal Bank, Ratnakar Bank, Muthoot Finance and Bajaj Finserv. One of the fastest growing players in the segment, Max Bupa is now the 9th largest private health insurer in the country, recently achieving a milestone of 1 million retail customers. The Company now serves as a trusted health insurance partner to more than 2 million customers, including rural customers covered under the Government’s Rashtriya Swasthya Bima Yojana (RSBY) scheme.
Antara Senior Living, the third company under Max India, is pioneering the concept of ‘Ageing in Place’ for the elderly by developing Senior Living communities in India. Antara’s maiden community with over 200 apartments, situated near Dehradun, Uttarakhand will be functional by December 2016.
Speaking on the occasion of listing of the company, Rahul Khosla, President, Max Group and Chairman, Max India said, “There is tremendous growth opportunity in each of the three underlying businesses of Max India. With only about 5% penetration of health insurance and 1.3 hospital beds per 1000 people, both Healthcare and Health Insurance sectors have very low penetration and therefore huge headroom for growth. Senior living is a sunrise industry in which Antara Senior Living is a pioneer.”
Mohit Talwar, Managing Director, Max India said, “The listing of the new Max India will lead to a more specific value discovery for our businesses in the Health & Allied space and will provide investors the choice to be associated exclusively with these high-potential businesses.”
About Max Group
The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance, Healthcare & Allied businesses and packaging sectors. In FY ‘16, the Group recorded a consolidated turnover of Rs 14,237 Cr. It has a total customer base of over 9 million, nearly 240 offices spread across India and people strength of around 22,500 as on 31st March 2016. The Group’s investor base includes marquee global financial institutions such as Goldman Sachs, KKR, IFC Washington, Temasek, Fidelity, Vanguard and New York Life.
The Max Group comprises three holding companies, namely:
Max Financial Services, the holding company for Max Life, India’s largest non-bank-owned, private life insurance company. Max Financial Services owns and actively manages a 69.01 per cent stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (MSI), a Japan- headquartered global leader in life insurance.
Max India, the holding company for Max Healthcare, Max Bupa Health Insurance and Antara Senior Living, is focused on health and allied businesses. Max Healthcare and Max Bupa Health Insurance are joint ventures with global leaders, Life Healthcare (South Africa) and Bupa Finance Plc. (UK), respectively. These businesses have well-entrenched positions in their respective categories, and are recognized for their outstanding service standards. The Company owns and actively manages a 45.95% per cent stake in Max Healthcare, a 51% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.
Max Ventures and Industries, the holding company for Max Speciality Films, an innovation leader in the Speciality Packaging Films business. In addition to manufacturing, the Company also serves as the Group’s entrepreneurial arm to explore the ‘wider world of business’, especially taking cues from the economic and commercial reforms agenda of the present Government, including ‘Make in India’, ‘Skill India’, ‘Digital India’, among others.
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