Goldman Sachs has bought a 6.47% stake in Max India for.308 crore from Warburg Pincus,raising its total shareholding in the insurance and healthcare company to 15.6%.Last weekend,Goldman Sachs bought the shares from open market from three affiliates of Warburg Pincus Parkville Holdings,Melany Holdings and Madison Holding — at.180,a 7.7% premium to Fridays closing price,Warburg Pincus said in a disclosure to stock exchanges.With this,Warburg Pincus stake has more than halved to 5.82% from over 14% at the beginning of the fiscal.It had also sold 2% stake in June at around the same price.In 2004,the American company had bought the stake at an average price of.40 per share and was Max India’s first private equity investor.According to industry estimates,Warburg Pincus has already made a profit of around.500 crore in its sevenyear old investment,excluding the residual stake valued at around.270 crore at current market price.Max India deputy MD Mohit Talwar said Goldman Sachs is a long-term strategic investor and brings domain expertise,both in the financial services and healthcare businesses.Before the transaction,Goldman Sachs held around 9% stake in the company after it converted its debentures into shares earlier this year.It is now the largest shareholder after founder Analjit Singh who owns a 37% stake.Last fiscal,Max India reported a net profit of.9 crore against a loss of.72 crore in the previous year. The Times of India
Goldman Sachs Buys 6.47% Stake in Max India
Advertisement
