Max India Ltd will sell 9.4 per cent stake in the company to Goldman Sachs Capital Partners for the rupee equivalent of around $115 million on preferential basis, the company said on Tuesday.
Max India will issue Fully and Compulsorily Convertible Debentures (FCDs) of the face value of Rs867 to Goldman Sachs Capital Partners, the private equity arm of Goldman Sachs, through its wholly owned subsidiary Xenok Ltd, the company informed the Bombay Stock Exchange.
The FCDs bearing a coupon rate of 12 per cent per annum would have to be converted to equity within 15 months of the date of allotment. Max India has convened an extra-ordinary general meeting on 22 January, 2010 to obtain approval from shareholders to the FCD and warrant. The company said the issuance would be at Rs46.77 per US dollar.
The company also said it would issue 2 million warrants to promoter Analjit Singh for Rs173.4 crore which represent about 3 per cent of the post-issue share capital of the company on conversion. Each warrant will be converted into four equity shares of Rs2 each at a Rs214.75 premium per share within 18 months.
Max India is a diversified firm having interests healthcare, IT and financial services.
According to analysts with a treasury corpus of Rs330 crore and the investments by Goldman Sachs and Analjit Singh which are expected to be in February 2010, the company would have access to about Rs1,000 crore which would meet its funding requirement for the next two years.