Max Healthcare gains on stock market debut, hits 5% upper limit

Private equity major KKR holds 51.9 per cent in Max Healthcare.
Shares of Max Healthcare Institute hit 5 per cent upper limit during their stock market debut on Friday.

Shares of Max Healthcare ended at Rs 111.8, after hitting the 5 per cent upper limit over the discovered price. At the last close, the company is valued at Rs 10,108 crore.

The company has been created following the demerger of Max India’s hospital business and the subsequent merger of Radiant Life Care.

The subsequent pooling of hospital assets of the two group have helped create India’s second-largest hospital chain after Apollo Hospitals.
Private equity major KKR holds 51.9 per cent in Max Healthcare. KKR was the common investor in both Max India Group and Radiant Group. Chairman & Managing Director Abhay Soi will hold 23.2 per cent stake and Max promoters will hold 7 per cent in the company.

In 2019-20, Max Healthcare had revenues Rs 4,026 crore, with an average occupancy of 72.5 per cent over a bed capacity of 3,391 beds. The company had an operating margin of 14.6 per cent with an average revenue per operating bed of Rs 51,000.

The company in a press release said it plans to focus on the metros and has significant potential for brownfield expansion of beds at a lower capex and rapidly ramp up capacities at the existing locations.

“We see ourselves to be rated along with the best in the industry. The reason: In terms of sales per bed Ebitda margins, we have outperformed the sector in the past three quarters and are fairly certain for this quarter as well. The worst of the pandemic seems to be behind us,” Soi told Business Standard ahead of the listing.


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