Max Healthcare Institute surges 19% after 5.2% equity changes hands on BSE

Shares of Max Healthcare Institute (MHIL) surged 19 per cent to Rs 132.55 on the BSE in the early morning trade on the Friday on back of heavy block deals. The stock of the healthcare facilities company was trading at its highest level since August 21, 2020.

At 09:37 am, the stock was trading 12 per cent higher at Rs 125.65, as compared to 0.04 per cent rise in the S&P BSE Sensex. Around 47 million equity shares representing 5.2 per cent of the total equity of Max Healthcare Institute have changed hands on the BSE. The name of the buyers and sellers were not ascertained immediately.

In June, Max India informed the exchanges that the National Company Law Tribunal (NCLT) had approved the composite scheme of merger and demerger which involved a merger of the healthcare assets of Max India into MHIL and demerger of the residual businesses of Max India into Advaita, a wholly-owned subsidiary of Max India.

According to the company’s investor presentation, Radiant Life acquired a 49.7 per cent stake in MHIL by buying out South Africa’s Life Healthcare in June 2019. Abhay Soi and KKR were approved to be the promoters of MHIL, while previous Max promoters were reclassified as public shareholders.

Post composite scheme, MHIL will become compliant to the minimum public shareholding of 25 per cent within a period of one year from the date of listing of its equity shares or as prescribed under applicable regulations. KKR to acquire a 4.99 per cent stake of the merged entity from Max Promoters, post compliance with a minimum public shareholding of 25 per cent.

MHIL is the second largest healthcare chain in India by revenue with a network of 17 Healthcare Facilities, including BLK Super Speciality Hospital and Nanavati Super Speciality Hospital (post-de-merger of Radiant’s healthcare business into Company).