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Max India Limited to Relist on Indian Bourses Tomorrow; Unlocks Opportunity to Invest in High-Potential Senior Care Business

  • Flagship business Antara enters new business line – Assisted Care Services; will launch over 35 Care and Memory Care Homes with over 1200 beds
  • Antara to invest Rs 300 Cr. in Assisted Care Services and Senior Living project at Noida
  • Noida Senior Residences witnessing strong sales velocity– 30% inventory sold despite Covid-19 onset
  • Max India proposes to utilize portion of Treasury Corpus for Capital Reduction

Max India Limited (till recently known as Advaita Allied Health Services Limited), a part of the USD 3 bn Max Group, will list and start trading on the National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE) on 28thAugust 2020. The listing will unlock value for shareholders of erstwhile Max India allowing them with pure play access tothe sunrise and high-potential Senior Caresector.

 

Advaita was formed as a result of the merger of the healthcare assets of the erstwhile Max India into Max Healthcare and demerger of the Senior Care and other businesses of Max Indiainto Advaita on June 1, 2020. Each shareholder has received one share of new Max India with a face value of Rs 10 for every 5 shares of erstwhile Max India, which had a face value of Rs 2 each.

 

The new ‘Max India’ is the holding company of Max Group’s Senior Care business ‘Antara’ and a skilling company, ‘Max Skill First’. The relisting of new ‘Max India’ tomorrow,followsMax Healthcare’s listing last week. The listings are the outcome of a comprehensive scheme announced last year that involved a series of transactions including the demerger of KKR backed Radiant Lifecare’sassets into Max Healthcare, which resulted in listing of merged Max Healthcare.

 

Antara, Max India’s flagship operating businessis an integrated service provider for all senior care needs. It operates across two lines of businesses – Residences for Seniors and Assisted Care Services.Antara’s flagship residential community is up and running in Dehradun withnearly 200 apartments. In 2020, it launched a new senior living facility in Noida, Sector-150. With 340 apartments in its first phase of development, it will cater to the health-related, wellness, social, recreational, andeducational needs of seniors and will be ready for possession by 2024. Through a blend of lifecare and lifestyle services, Antara’s Senior Living business focuses on providing Care, Comfort and Companionship to seniors.

 

Antara’s Assisted Care Services include ‘Care Homes’ and ‘Care at Home’. They cater to seniors over the age of 55, who need more immersive interventions in their daily lives due to medical or age-related issues. With its first facility in Gurugram launched in July 2020, Antara’s Care Homes, provide long-term care to seniors who need constant medical and nursing supervision and short-term care services for the recuperation. Antara plans to set up a chain of over 35 Care Homes with more than 1200 beds over the next fiveyears. Its Care at Home services will provide healthcare services such as Home critical care, Diagnostics, Nursing care, pharmacy, physiotherapy etc. to seniors inside their own home’s comfort.

Max India plans to invest over Rs. 300 Cr. in the next 3 to 4 years across these new Assisted Care Services business lines and its existing business line of residences for seniors.

Antara is at a vantage position to shape and capture a large share, with the senior populationexpected to make up 10% of total population in India by 2025. Senior Care is a sunriseindustry in India with a USD 10 bn+ market across multiple value pools,but one that is highly underserved currently.

 

Given the backing of Max Group with its unique lineage of healthcare, insurance, hospitality and real estate, as well as the success of its flagship Dehradun community, Max India expects its business Antara to be significantly value accretive for its shareholders. Antara aims toserve the elderly population belonging to the affluent to mass affluent segment starting with Delhi-NCR and eventually in 2 additional clusters – West (Mumbai & Pune) and South (Bangalore). The size of this cohort is an estimated 4 million.Antara is working with a capital light model in both businesses to optimize shareholder returns.

 

Max India also has Rs 400 Cr. treasury corpus besides a rent potential commercial asset in Delhi NCR on its balance sheet. It plans to utilize the corpus for investing in Antara’s value creation journey and is also evaluating options such as capital reduction subject to the approval of its Board.

Max India also operates a skilling company, Max SkillFirst. It is a skilling solutions provider for professionals in the sales and services domain.

Speaking on the occasion,Analjit Singh, Founder and Chairman, Max Group and Max India said, “Max India is embarking on a new journey – one that offers exponential potential. There is a tremendous opportunityto benefit from the senior caregrowthmega trend in India. This category will be USD 10-12 Bn market across various value pools. Seniors have started to become a large cohort in India and is expected to comprise 10% of total population in India by 2025. There is a large unmet need in this target segment, which still struggles for optimal healthcare and wellness services, and therefore a huge headroom for expansion.”

 

Commenting on the listing of the company, Tara Singh Vachani, Executive Chairman, Antara said, “With new Max India, we have even greater promises to fulfil and stay true to our commitment as far as senior care business in India is concerned. 17% of elderly are living alone with a drastic fall in the ratio of caregivers to the elderly, which shows a dire need to address the situation. With Antara 2.0, we have evolved further and created an integrated platform for seniors, which will cater to their comprehensive needs. And as we progress, we are confident to provide standardized and quality senior care with our ‘Assisted Care Services’ in line with the Max Group’s integral value of Sevabhav”.

 

Mohit Talwar, Vice Chairman, Max Group and Managing Director, Max India said,“The listing of the new Max India will lead to a more specific value discovery for our businesses in thesenior care space. The Max Group has provided a cumulativeannual value creation of 24% since its inception three decades ago. We hope to continue the value accretion journey in Max India through an asset light growth, thereby benefiting our shareholders and other stakeholders.”

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