Max Healthcare slips on launching QIP

Max Healthcare Institute fell 1.82% to Rs 191.7 after the company launched a qualified institutional placement (QIP) of equity shares on Thursday (4 March 2021).

On 1 September 2020, the company's board had approved the proposal for issuance of equity shares by way of 'qualified institutions placement (QIP)' for an issue size aggregating up to Rs 1200 crore. The same was approved by the company's shareholder at its 19th Annual General Meeting held on 29 September 2020.

The QIP issue committee of the board of directors of the company, at its meeting held on 4 March 2021, authorised the opening of the QIP issue and approved the floor price of Rs 190.40 per equity share, the company said in a regulatory filing made after market hours yesterday.

The floor price is at 2.48% discount to Max Healthcare's closing price of Rs 195.25 recorded yesterday.

The capital raising committee of the bank will meet on Tuesday, 9 March 2021, to determine the QIP issue price.

In its draft placement document filed with the bourses, the company said that it proposes to utilize the net proceeds for part financing the funding requirements of the company; for meeting the capital expenditure and working capital requirements of the company, subsidiaries, managed healthcare facilities and partner healthcare facilities and affiliates, if any, including investment or increasing our stake in existing or future subsidiaries, joint ventures and affiliates; for repayment of debt; for expansion and modernization; and for general corporate requirements or any other purposes, as may be permissible under the applicable law and approved by board or its duly constituted committee.

Further, if applicable and to the extent possible, the company proposes to achieve minimum public shareholding as prescribed under the Securities Contracts (Regulations) Rules (SCRR), 1957, pursuant to this issue.

Max Healthcare Institute (MHIL) is a provider of healthcare services. The company has major concentration in north India consisting of a network of 16 healthcare facilities.

The hospital chain operator reported a consolidated net profit of Rs 90.36 crore in Q3 FY21 as compared to a net loss of Rs 1.80 crore in Q3 FY20. Net sales during the quarter increased by 197.9% YoY to Rs 795.60 crore.

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