Max India today announced that it has raised Rs. 1,000 crore through a QIP, which was subscribed 2.3 times by broad based investors, spread globally. Investors having long-term horizon subscribed around 80% of the offering. CLSA acted as the sole book runner and global coordinator for the issue.

The QIP raises FII holding in the company to 39% from around 26% earlier. Max India has an investment limit of 49% for FIIs.

Mr. B. Anantharaman, Joint Managing Director, Max India Limited, said, "We chose to go for a global road show in order to spread thematic awareness about the core sectors we are in and also share robust growth and impressive progress made by each of our businesses with a large number of investors. We met over 100 potential investors over the course of the road show in India, Singapore, Hong Kong, UK, Germany and North America and one out of every four investors we met submitted a bid."

"Strong sectoral growth prospects, increasing awareness of the Indian economy coupled with the robust performance of our Life Insurance and Healthcare businesses attracted the attention of these investors. The above, along with the credibility and reputation enjoyed by the Max Group enthused the cross-section of potential investors to a large extent", Mr. Anantharaman added.

The company has issued 41,666,660 new shares at a price of Rs. 240/- per share. Each share of Max India has a face value of Rs. 2/- and therefore, the new shares have been issued at a premium of Rs. 238/- per share. The new shares aggregate 18.8% of the fully diluted equity base of the company. About 40 % of the allocation went to US based investors while the remainder was split evenly between Asia and Europe based investors.

Max India plans to use the net proceeds from this issue to meet its additional funding requirements in line with its strategic business plans to further grow each of its existing businesses. A portion of the proceeds is also expected to be used for general corporate purposes including acquisitions and investments in new ventures.

Encouraged by an almost 100% CAGR of its life insurance business since inception, the company has committed itself to growth plans for this business.

As per SEBI regulations governing QIPs, the shares can be placed with only 49 investor accounts (including any sub-account). The final allocation of shares was made by Max India to a group of 24 investors represented by 42 investment accounts.

About Max India Limited

Max India is a multi-business corporate, driven by the spirit of Enterprise, focused on Knowledge, People and Service oriented businesses of Healthcare (Max Healthcare), Life Insurance (Max New York Life Insurance), and Clinical Research (Neeman Medical International). Max India's other businesses are Specialty Plastic Products for the packaging industry (Max Speciality Products) and Healthcare Staffing (Max HealthStaff).

Max New York Life (MNYL) is a joint venture between New York Life, a Fortune 100 company and Max India Limited. MNYL has positioned itself firmly on the quality platform. In line with its vision 'To be the most admired life insurance company in India', it has developed a strong corporate governance model based on the core values of excellence, honesty, knowledge, caring, integrity and teamwork.

MNYL has established a robust distribution network across the country. With 165 offices in 121 locations and more than 25,000 agent advisors, 17 bancassurance relationships, 14 corporate agents and around 300 people strong direct sales team, the company has built a robust distribution network to support strong growth.