Max Healthcare gains after block deals

Max Healthcare Institute rose 3.01% to Rs 372.45 after the counter witnessed large block deals in early trade today.

On the BSE, 26.42 crore shares were traded in the counter so far compared with average daily volumes of 36,983 shares in the past two weeks.

The media reported that American private equity major KKR and Co will sell up to 26.83% in Max Healthcare Institute for Rs 9,416 crore via block deals on Tuesday (16 August). The offer will mark the exit of KKR from the company. The shares will be sold at Rs 350 to Rs 362 a share a discount of over 3% to its closing price on Friday (12 August).

In March 2022, Radiant, a KKR affiliate, sold a 10% stake in Max Healthcare Institute for nearly Rs 3,300 crore at Rs 340 per share.

Radiant acquired a 49.7% stake in Max Healthcare in June 2019 for around Rs 2,136 crore.

In September 2021, KKR, as part of its exit strategy, sold 8.44 crore shares (8.74% equity) of the company for Rs 2,956 crore through open market transactions.

The healthcare services company's network PAT stood at Rs 229 crore in Q1 FY23, up 11% versus Rs 205 crore in Q1 FY22 and up 33% versus Rs 172 crore in Q4 FY22. The network gross revenue stood at Rs 1,473 crore, registering a growth of 6% year on year (YoY) and 14% quarter on quarter (QoQ). On a like‐to‐like basis, gross revenue (excl. Covid‐19 vaccination and related antibody tests) for Q1 FY23 was at Rs 1,471 crore, reflecting a growth of 18% YoY.

Max Healthcare Institute (MHIL) is one of India's largest hospital chain (considering only income from healthcare services) in fiscal 2022. MHIL has major concentration in North India consisting of a network of 17 healthcare facilities.

The Max network includes all the hospitals and medical centres owned and operated by the company and its subsidiaries, partner healthcare facilities and managed healthcare facilities.

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