Shares of Max Healthcare Institute Ltd. closed 5% after India's second-biggest hospital chain, created after a merger with the healthcare business of Radiant Life Care Ltd., listed on the exchanges.
The stock opened at Rs 107 apiece, on the Bombay Stock Exchange. It closed at Rs 112.35 apiece.
After the listing, private equity firm KKR & Co. and Abhay Soi, a turnaround specialist, became the controlling shareholders of the hospital chain with a total holding of a little over 75% in the combined entity. Max Group, classified as public shareholder, owns 7%. KKR will increase its holding to 52% by acquiring 4.99% from Max Group following the listing, according to a company statement.
Max Healthcare Institute Ltd. and Radiant merged to create an entity with a total revenue of around Rs 4,000 crore and 17 hospitals, replacing Fortis Healthcare Ltd. to be the nation's No. 2 hospital company. The National Company Law Tribunal approved the scheme of arrangement in January. The company had received in-principle approval for listing of 90.45 crore equity shares of Rs 10 each from the exchanges.
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