Max India fund raising plan on track despite slowdown

NEW DELHI: Insurance and healthcare firm Max India on Thursday said it is in the process of raising funds to invest in its existing businesses in spite of the credit crunch due to the global economic downturn.

"Max India does have fund raising plan which is exactly the same plan announced one year ago and it will happen in the middle part of next year," Max India Chairman Analjit Singh said.

Last year, it had announced to raise $240 million (Rs 1,000 crore) from foreign institutional investors through the qualified institutional placement route for both organic and inorganic growth.

On the fund raising plan, he said, "Eighty-two per cent of this is so-called underwritten by the top seven shareholders of the company and all seven shareholders are actually saying 'Welcome any time'."

However, on the amount of funds to be raised, he said, "That will depend on how the next three or four months go."

Singh said there will be no deferring of plans due to the financial crisis. "Fortunately, health insurance, life insurance and healthcare are relatively less impacted by the slowdown."

On other plans, he said four new hospitals are in the pipeline and Max New York Life is opening one office everyday in the country.

"We are trying to reformulate our product portfolio to keep in time with...slightly more conservative, less market oriented, more long-term insurance products. But no significant change in growth plans for the moment, because we are funded based on equity, not on debt," Singh said.