Kayak Investments Holding Pte (affiliate entity of PE firm KKR) on September 29, 2021 89.52 mn shares of Max Healthcare (MH) at around Rs 350/ share aggregating to more than Rs 3,100 crore.
Key points to note
- KKR is categorised in the promoter group of MH.
- It along with the turnaround specialist Abhay Soi had restructured the erstwhile Max India healthcare business and combined it with Radiant Life to form MH that automatically got listed in August 2020.
- As of June 2021, Kayak held 47.24% in MH and Abhay 23.18%.
- Post the current selling, KKR will be left with 37.69% stake in MH.
- MH was listed at Rs 112/ share in August 2020 and is currently trading at Rs 360/ share. Current valuations seems to be highly stretched. During June quarter, MH reported total revenues of Rs 500 crore and net profits of Rs 88 crore. As against this, the current market cap of the Company is almost Rs 35,000 crore.
Operationally, the prospects of MH are looking up – both because of the overall pickup in the sector as well as rationalisation bought in by Abhay.
It would be an interesting stock to watch.