IFC proposes $75m investment in India’s Max Healthcare

According to a release, the investment will help Max Healthcare acquire a 49% stake in Saket City Hospital (SCH) in Delhi, which provides medical services to the chain. Max Healthcare is creating a hospital complex in the city and plans to integrate SCH into the facility. The investment is expected to cost $325 million in all. IFC’s investment will consist of non-convertible debentures in Max Healthcare.

Max Healthcare is the flagship asset of Max India, the holding company for the former health and associated businesses verticals of the Max Group. It operates 14 hospitals across India with over 2,500 beds. 

The company has been looking for overseas investors to fund the SCH acquisition and IFC is considered an attractive candidate due to its ability to provide the desired capital with a long-term tenor. Max Healthcare also expects the development finance institution to contribute its expertise in global healthcare investments to help with the acquisition and the hospital complex project.

IFC currently holds a 7.5% stake in Max Healthcare, having invested in several tranches between 2007 and 2010. It made a partial exit in 2010 and is set to sell its remaining stake equally to Max India and South African hospital chain Life Healthcare Group for INR4.2 billion ($65.6 million). After the transaction, Max India and Life Healthcare will each have a 49.6% stake.

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• Topics
• South Asia
• Healthcare
• Expansion
• India
• IFC
• Growth capital