Goldman Sachs Invests $115 Mn In Max India Ltd
GS Capital Partners is investing $115 Mn in Max India Ltd for a 9.4% stake, valuing the insurance company close to $1220 Mn. Goldman Sachs will invest through its $20 Bn GS Capital Partners VI Fund.
Max India will issue FCDs with a face value of Rs 867 each to Goldman Sachs. The debentures will be converted to shares after 15 months into four equity shares of Rs2 each at a premium of Rs 214.75 each. The FCDs will have a coupon rate of 12%.
Simultaneously, Analjit Singh is also investing $37.5 Mn in the company. Max India will issue 2 Mn warrants to Analjit Singh, which can be converted into equity shares anytime during the next 18 months. Analjit Singh will pay 50% of the total consideration upfront. Post conversion, Analjit Singh will retain his 34% stake in Max India.
The proceeds will be used to fund expansion plans in the insurance and healthcare businesses. About $111 Mn of the new funds will be invested in life insurance business, $43 Mn will be invested in the health insurance business, while $32 Mn will go into the healthcare business.
Max India Limited operates through 5 subsidiaries – Max New York Life (life insurance), Max Healthcare (healthcare), Max Neeman Medical International (Clinical Research), Max Speciality Products (packaging), Max Bupa Health Insurance (health insurance).
The life insurance business is the major contributor to Max’s revenues with about 84% share, while the healthcare business constitutes for 8%.
Max India has received PE investments in the past from IFC and Warburg Pincus. IFC invested $66 Mn in Max Heathcare in 2007 and again invested $32 Mn in Max Healthcare in May’09. Warburg Pincus invested $43 Mn in Max India Ltd for a 28.7% stake in 2004. It partially exited Max by selling 5.6% stake for $53 Mn.
GS Capital Partners is the PE arm of Goldman Sachs. It generally invests $200 Mn-$800 Mn in large companies. It raised GS Capital Partners VI Fund in 2007, with $20 Bn in capital commitments.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 13/12/11 | Warburg Pincus - Max India - Goldman Sachs | Private Equity | Goldman Sachs Capital Partners | 57.83 |
| 24/06/11 | Max India - Warburg Pincus (Part Exit) | Private Equity | Maxopp Investments Ltd | 20.00 |
| 24/12/10 | Max India - Temasek Holdings | Private Equity | Temasek Holdings Pte. Limited | 26.54 |
| 27/12/09 | Max India-GS Capital | Private Equity | GS Capital Partners VI | 115.00 |
| 17/07/09 | Max India - Warburg Pincus India Exit | Private Equity | 50.50 | |
| 11/05/09 | Max India - International Finance Corp. | Private Equity | International Finance Corporation | 30.00 |
| 24/12/04 | Max India - Warburg Pincus | Private Equity | Warburg Pincus International | 18.00 |
| 24/05/04 | Max India - Warburg Pincus | Private Equity | Warburg Pincus International | 45.00 |
| 14/02/04 | Max India - ChrysCapital | Private Equity | ChrysCapital Investment Advisors | 11.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 31/12/11 | M&A | Singapore Government | Reliance Industries Limited | 470.72 | Completed |
| 13/12/11 | Private Equity | Goldman Sachs Capital Partners | Max India Limited | 57.83 | Completed |
| 26/08/11 | IPO / Offerings | SRS Limited | 44.08 | Completed | |
| 04/07/11 | M&A | Vijayrath Mercantile Private Limited | Chisel and Hammer (Mobel) LIMITED | 1.79 | Completed |
Fund |
||||
| Name | Corpus | Target Sector | Website | KeyContact |
|---|---|---|---|---|
| GS Capital Partners VI | 20300 | BFSI Healthcare IT/ITES/Technology |
www.goldmansachs.com | |
Company |
||||
| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Max India Limited | Analjit Singh | Bhai Mohan Singh Nagar, Railmajra Tehsil Balachaur | www.maxindia.com | |
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