Max India Sells its 51% Stake in Max Bupa to True North

On 26th February, 2019, Max India sold its entire 51% stake in Max Bupa Health Insurance Co Ltd (Max Bupa) to the renowned private equity firm True North for over ₹510 crore. As per Max India, the stake has been sold either directly or through its affiliates. The proposed transaction is an all-cash deal. Moreover, it values Max Bupa at an enterprise value of ₹1,001 crore. Max India India said that the deal has been at a consideration of Rs 510.51 crore, which the company will receive at the time of completion of the proposed transaction.

The buyout marks True North’s first investment in the insurance sector. The popular PE firm is also looking forward to engaging in minority investments in the future, if it finds the perfect partner. True North’s managing partner Vishal Nevatia said, “We are looking at life and general insurance as well. If we find the right partner with an exciting vision and aligned values, we are happy to be a supportive minority partner. If there is a partner who is looking to dilute or sell out, and wants us to take majority control we are fine with that too.”

The Max-True North deal is another significant PE investment and shed lights on growing consolidation in India’s insurance sector. Shares of Max India closed 2.61% higher at ₹82.50 on the BSE.