New Max India Makes its Debut on the Bourses

Max India was locked at 5% lower circuit at Rs 185.25 onBSE after stock debuted on the bourses today, 14 July 2016, after the demerger scheme of the Max Group.The stock debuted at Rs 195. The stock hit a high of Rs 199.95 so far during the trading session. On BSE, so far 76,000 shares changed hands in the counter.

Meanwhile, the S&P BSE Sensex was down 39.72 points or 0.14% at 27,775.46.The new Max India is third and the last company to start trading on the bourses after the demerger of the erstwhile Max India. The two other companies viz. Max Financial Services and Max Ventures and Industries have already started trading. As per the demerger scheme of erstwhile Max India, one equity share of Rs 2 each of Max India (formerly known as Taurus Ventures Limited) was allotted for every one equity share held in Max Financial Services (formerly Max India).

Max India is the holding company of Max Healthcare, Max Bupa Health Insurance and Antara Senior Living. Max India owns and actively manages a 45.95% in Max Healthcare, a 51% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.

Max Healthcare operates a chain of hospitals. Since 2011, Max Healthcare's revenues have grown at a CAGR of 26% and the company turned profitable in FY 2016 reporting an EBITDA of Rs 215 crore and profit after tax of Rs 10 crore. 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. Max Healthcare plans to expand the Saket City Hospital facility by adding 900 beds over the next few years, thereby expanding its capacity to 1,200 beds.

Max Bupa Health Insurance is a joint venture between Max India and Bupa Finance Plc, UK. The company offers health insurance services. Bupa recently acquired an additional stake in Max Bupa Health Insurance, thereby increasing its stake in the joint venture to 49% from 26%.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.

A day ahead of the listing of Max India, Rahul Khosla, President, Max Group and Chairman, Max India said in a statement that 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, he said. Senior living is a sunrise industry in which Antara Senior Living is a pioneer, Khosla said.