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KKR to sell entire stake in Max Healthcare tomorrow

The global investment company, KKR & Co. Inc, is reportedly selling its 27% stake in Max Healthcare on August 16th 2022.

According to news reports, KKR is planning to raise around 9500 crore Indian rupees from the sale entire stake in Max Healthcare Institute Limited.

Max Healthcare Institute Limited, based in New Delhi, was founded in 2001 as a medical centre in South Delhi. The healthcare entity went into become a full-fledged hospital chain by establishing hospitals and clinics in 17 locations around the country.

KKR is planning to sell its shares in Max Healthcare through a block deal, which would be executed through Kayak Investments.

As of now, KKR has 26.7 crores in Max Healthcare, which would be sold at a price band of Rs 350-361.9 per share.

KKR acquired the shares of Max Healthcare in 2018 when the price of each share of the hospital chain company was 80 rupees per share.

The shares of Max Healthcare got listed on the Bombay Stock Exchange and National Stock Exchange in August 2020 at a rate of 106.45 rupees per share. As of 12 August, 4:01 pm IST, the shares of the company are trading at 361.90 on National Stock Exchange.

Kayak Investments Partners, which is an affiliated entity of KKR, held shares in Max Healthcare on behalf of KKR. Kayak Investments Partners is a hedge fund based in San Francisco, California.

As of June 2021, Kayak Investments had a 47.24% stake in Max Healthcare by owning 45.63 crore shares of the hospital chain.
In the following September in 2021, Kayak Investments sold nearly 8.44 crore shares worth, 2957 crore Indian rupees in an open market transaction. The shares were bought by HDFC Mutual Fund, Veritas Funds Plc and SBI Mutual Fund to name a few.

A separate transaction in March 2022 saw Kayak Investment selling 10% of additional shares for nearly, 3300 crores.

The KKR affiliate sold another 10 per cent stake in the company for nearly Rs 3,300 crore in March 2022. The buyers included SBI Mutual Fund, Pension Fund Global and Smaller Cap World Fund.

According to the financial and earnings report released by the company on 10th August 2022, the company witnessed an 11% growth in profit after tax to post 229 crores at the end of June 2022. In the second quarter of the previous financial year, the profit after tax figure of the company was 205 crore Indian rupees.

The net revenue of the company also increase by 5% from 1322 crore in June 2021 to 1,393 crore in the 2nd quarter.

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