Shares of Max Healthcare Institute Ltd ended at an upper circuit of 5 percent after making a strong debut on the stock exchange on Friday. The shares of the company got listed at Rs 106.45 apiece on the National Stock Exchange.
Soon after listing, the stock jumped 5 percent to Rs 111.75 apiece and settled at that level for the day.
The listing follows a merger of the healthcare assets of Max India into Max Healthcare and demerger of the residual businesses of Max India into Advaita Allied Health Services, a wholly-owned subsidiary of Max India.
Max Healthcare Institute shares were listed in the list of T Group of Securities in on the Bombay Stock Exchange. The scrip will be in Trade-for-Trade segment for 10 trading days.
"Listing of Max Healthcare Institute Ltd - Max Healthcare and Radiant merged their healthcare business to create the second largest healthcare chain in India by revenue after Apollo Hospitals. Max Healthcare will be led by Abhay Soi and backed by KKR&Co., who are well known as a global investment company," said Yash Gupta, Equity Research Associate, Angel Broking Ltd.
The revenue for the merged entity for FY2020 was Rs 4,026 crore and it will be the second-largest private hospital chain after Apollo Hospitals. Currently, Max Healthcare has 17 Facilities with a total bed capacity of 3,400 with Major facilities in the NCR region.
"Abhay Soi and KKR will be the promoters of Max Healthcare with controlling stakes of 52 percent and 23.3 percent respectively. We expect Max Healthcare to do well under the leadership of Abhay Soi and KKR,” Gupta added.