Max India to Explore Rewarding Shareholders via Capital Reduction

6

Max India to offer acquiring up to a maximum of 20% of its outstanding shares from public shareholders at Rs. 85 per share; a premium of 37% to its last closing price of Rs. 62 per share

Company to utilize up to Rs. 92 Cr. for the capital reduction exercise

The offer comes shortly after the relisting of Max India shares post demerger

Max India Limited, a part of the USD 3 bn Max Group, today announced that it would explore a capital reduction program to reward its shareholders, as communicated during the divestment of Max Bupa by the erstwhile Max India. The company plans to offer its public (i.e., non-sponsor group) shareholders the option of taking Rs. 85 per share for up to 20% of their shareholding in lieu of cancelling these shares.

Max India, which recently relisted on the Indian bourses on August 28, 2020 after a demerger process has a treasury corpus of over Rs. 400 Cr. created primarily from divestment proceeds of its erstwhile subsidiary, Max Bupa. It intends to utilize up to Rs. 92 Cr. from this corpus for the capital reduction process, while the balance of Rs. 300+ Cr. will be apportioned for growth and other operational expenses. Max India’s shares closed at a price of Rs. 62 per share on September 14, 2020. The cash out through a Capital Reduction process translates to a 37% premium to this price.

The Board of Max India approved the capital reduction exercise earlier today. The proposal will also need to be approved by a special resolution of public shareholders. It will additionally need regulatory approvals including from stock market regulator and NCLT, Mumbai. The approvals process is expected to take about 6-8 months. Post capital reduction, Max India’s outstanding shares will decrease by up to 20%, from 5.38 Cr. to 4.3 Cr.

The Max India sponsor group has communicated its intention of not tendering its shares for capital reduction. Consequently, their shareholding is likely to increase to 51% from the current 41%. They will seek a SEBI exemption from the open offer requirement accordingly. The final quantum of capital reduction will be based on SEBI’s decision on an exemption.

Max India is the holding company of Max Group’s Residences for Seniors and Senior Care business, collectively known as ‘Antara’. It also owns a skilling company, ‘Max SkillFirst’.

Speaking on occasion, Mohit Talwar, Vice Chairman, Max Group & Managing Director, Max India said, “We had expressed our intent to reward our shareholders at the time we divested our health insurance business Max Bupa. This capital reduction process is a move towards that intent even though capital conservation has become important after the onset of COVID-19 induced economic slowdown. We will still have sufficient growth capital for growth and other expenses.”

Antara, Max India’s flagship operating business is an integrated service provider for all senior care needs. It operates across two categories – Residences for Seniors and Assisted Care Services. Antara’s flagship residential community is located in Dehradun with nearly 200 apartments. Earlier in the year 2020, it launched a new senior living facility in Noida, Sector-150. With 340 apartments in its first phase of development, it will cater to the social, recreational, educational, wellness, and health-related needs of seniors and be ready for living by 2024.

Antara’s Assisted Care Services include ‘Care Homes’ and ‘Care at Home’. They cater to seniors over the age of 55, who need more immersive interventions in their daily lives due to medical or age-related issues. With its first facility in Gurugram launched in July 2020, Antara’s Care Homes, provide long-term care to seniors who need constant medical and nursing supervision and short-term care services for recuperation. Antara plans to set up a chain of 35-40 Care Homes, including Memory Care Homes in the next 3-4 years. Its Care at Home services will provide well-equipped, medically trained professionals who can offer seniors care inside their own home’s comfort.

Max India also operates a skilling company, Max SkillFirst. It is a skilling solutions provider for professionals in the sales and services domain.

About Max Group

The Max Group is a leading Indian multi-business conglomerate with a commanding presence in the Life Insurance industry and has ventured into high potential sectors of Senior Care and Real Estate. The Group recorded consolidated revenues of ~Rs. 19,800 Cr. in FY2020. It has a total customer base of ~4 million, around 400 offices spread across India and an employee strength of more than 16,000 as on 31st March 2020.

The Max Group comprises three holding companies – Max Financial Services and Max Ventures & Industries, which are listed on the Indian stock exchanges, and Max India, which was delisted on June 11, 2020 as a part of an ongoing demerger process and relisted on the BSE and NSE on August 28, 2020.

The Group’s investor base includes marquee global financial institutions such as New York Life, KKR, IFC Washington, Baron, Vanguard, Ward Ferry, Briarwood Capital, Locus Investments, Nomura, First State Investments, Blackrock, First Voyager, Eastspring, Target Asset Management, Jupiter, Habrok and Doric Capital.

About Antara

Launched in 2013, Antara is a wholly-owned subsidiary of Max India Limited. It is an integrated service provider for all senior care needs. It operates two main lines of businesses – Residence for Seniors and Assisted Care Services.

Antara’s first residential community in Dehradun consists of around 200 apartments spread across 14 acres of land. In 2020, Antara launched a new senior living facility in Noida, Sector-150. With 340 apartments in its first phase of development, it will cater to the social, recreational, educational, wellness, and health-related needs of seniors and will be ready for possession by 2024.

Antara’s Assisted Care Services include ‘Care Homes’ and ‘Care at Home’. They cater to seniors over the age of 55, who need more immersive interventions in their daily lives due to medical or age-related issues. Starting with the first facility in Gurugram, Antara’s Care Homes, provide long-term care to seniors who need constant medical and nursing supervision and short-term care services for the recuperation of seniors. Antara plans to set up a chain of 35-40 Care Homes in the next three years. Its Care at Home services will provide well-equipped, medically trained professionals who can offer seniors care inside their own home’s comfort.

For more information, please visit antaraseniorliving.com.

Sponsors Posts

Policybazaar Unveils its new brand campaign "AapKiSideHai"

Policybazaar Unveils its new brand campaign

Akshay Kumar delivers the brand’s promise of always being on the customer’s side

Gurugram, 19th Sept, 2020: Policybazaar.com (Twitter handle: PolicyBazaar), India’s largest online insurance marketplace with over 10 million customers, showcases its commitment to customers in its new television campaign “AapKiSideHai”. The new ad campaign featuring Policybazaar brand ambassador, Akshay Kumar, highlights the brand’s promise of embracing a holistic customer centric approach while helping to bridge the insurance protection gap in India.

Policybazaar’sAapKiSideHai campaign seeks to reassure its customers on being a dependable Insurance partner for them, every step of the way. The brand has always focused on distributing products like term insurance, health insurance, zero commission ULIP’s and motor insurance that are optimal from a customer perspective. Policybazaar is now extending the brand promise beyond the purchase experience to ensure that consumers get the highest levels of service throughout the policy lifecycle.

The new brand campaign reinforces Policybazaar core value of putting the customer first by delivering on its promise of providing a trusted platform for all types of insurance products. The brand is committed to guiding the customer throughout the insurance journey, starting from recommending the right products at affordable pricing, ensuring thatthe policy issuance process is smooth and fast, and, to providing services and claims assistance when needed.

“While we continue to highlight the importance of Health & Term life Insurance through our marketing campaigns, with the brand promise of Policybazaar AapKiSideHai, we also intend to position Policybazaar as a customer centric brand, that is committed to stand by its customers, both pre and post purchase”, said Samir Sethi, Head of Brand Marketing, Policybazaar.com. The new ad series highlights Policybazaar’s unparalleled support to customers, while providing them with the ease of comparing and buying term and health plans online with guidance at each & every step.

Speaking about the TVC launch, Sharat Dhall, Chief Operating Officer, Policybazaar.com said, “Our ultimate aim is to provide 360-degree assistance to customers that starts from when the policy is bought, to provide assistance when the claim is paid out, should such a situation arise. Winning and maintaining customer trust is a strong ethos within the company and this campaign reflects that. At a time when the world is grappling with a crisis like no other, the brand intends to instill confidence in the customers’ buying decisions by assuring them protection of their futures with the right insurance products & thorough assistance throughout the journey.”

The new brand campaign in its series displays moments of indecision that people may have while investing in protection products. It addresses these queries &emphasizes the importance of nurturing a bond with the consumers thereby creating customer delight.