Max Healthcare Institute, which debuted on the BSE on Friday, said the scheme of arrangement among Max Healthcare and Radiant Life Care has led to the creation of India's second-largest healthcare chain by revenue.
"This listing is the final outcome of the amalgamation of erstwhile Max India into Max Healthcare and demerger of healthcare businesses of Radiant Life into Max Healthcare pursuant to the composite scheme of amalgamation and arrangement as approved by the National Company Law Tribunal," Max Healthcare Institute said in a statement.
This resulting merger came into effect from June 1, it added.
"Today is a momentous day for us... This is a listing of the amalgamated entity which is Max Healthcare as well as Radiant combine, the new business, and what has emerged is perhaps the second-largest healthcare chain in India in terms of revenue," Max Healthcare Chairman and MD Abhay Soi told reporters in a virtual media meet.
The company is a metro-centric business, with 85 per cent of the capacity in metros, largely Delhi, and a large facility in Mumbai. It has 17 facilities with 24,000 healthcare employees combined, including the people who are contracted to the company, he added.
"Our vision is essentially to be the most well-regarded hospital chain in the country," Soi said.
Currently, as a promoter, "I have 23.3 per cent stake in Max Healthcare Institute, as co-promoters KKR has 52 per cent stake in the company", he added.
On the key strengths of the company, Soi said it is the leading hospital brand particularly in the Delhi-NCR region, which gives it a huge amount of geographical heft and strength within the region, Soi said.
"We also have valuable land banks in Delhi and Mumbai within our network. We have permission to build a 600-bed hospital in Mumbai at Nanavati and 900 beds in Delhi at Max Saket.
"These are adjacent to our pre-existing hospitals which already are operating at large capacity utilisations. We intend to bring them onstream in the next 5 to 6 years," he added.
The company also intends to expand in an asset-light manner. "Other than that, merger and acquisitions and turnarounds have been intrinsic to our growth," Soi said.
The company is looking for robust financial performance, he added.
"I think we have a long-term sustainable growth story in an interesting market," Soi said.
The company's strategy going forward for the next 2-3 years will be optimising existing network, brownfield (already existing facility) expansion, looking opportunistically at inorganic growth, and scaling up of the Max laboratory pathology business, he added.
Soi told PTI, "The pandemic has created a lot of stress on many balance sheets... I think there will be a lot of opportunity for consolidation, and essentially people with strong balance sheets and strong operations will be in a position to attract such opportunities." The company is also proud of its response to the COVID-19 pandemic, Soi said.
Shares of Max Healthcare Institute, which opened at Rs 107 apiece on Friday, ended the day with a five per cent gain at Rs 112.35 per scrip on the BSE.
