New Delhi, Jun 1 (PTI) Max India on Monday said the National Company Law Tribunal (NCLT) has approved the composite scheme involving merger of the healthcare assets of Max India into Max Healthcare and demerger of the residual businesses of the company into Advaita.

"The composite scheme has been declared effective starting June 1, 2020. The record date for the demerger has been set as June 15, 2020," Max India said in a statement.

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All shareholders of Max India as on the record date will be allotted shares of Max Healthcare and Advaita Allied Health Services (which will be renamed as Max India Ltd later), it added.

"Both Max Healthcare and the new 'Max India' are expected will be listed on the Indian stock exchanges in August 2020," Max India said.

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This marks significant progress for the comprehensive scheme that involves a series of transactions including demerger of Radiant's healthcare assets into Max Healthcare, it added.

"The combination of Radiant and Max Healthcare will create the second-largest hospital network in India by revenue. The merged entity will operate over 3,500 beds throughout 17 hospitals and medical centres across India," Max India said.

The combined business is expected to provide significant growth potential and compelling business synergies, it added.

"The demerger will enable Max India to focus on the high potential category of Senior Care. The Max Group has had a track record of redefining sectors and in turn creating value for its shareholders," Max Group founder and Chairman Analjit Singh said.

Shareholders of Max India will receive one share of Rs 10 each of Advaita for every five shares of Rs 2 each that they hold in Max India, the statement said.

"Following the demerger and the spin-off, Radiant's healthcare assets merged into Max Healthcare with simultaneous merger of the residual Max India into Max Healthcare today. As a result of this merger, shareholders of Max India will receive 99 equity shares of the merged entity of Rs 10 each for every 100 equity shares of Rs 2 each that they hold in Max India," it added.

After the merger, Max India stood dissolved effective June 1, 2020, without being wound up and, subsequently, the equity shares of the merged entity and the new Max India will get listed on both BSE and National Stock Exchange, the statement said.

Shares of Max India closed at Rs 62.50 per scrip on the BSE, up 0.89 per cent from its previous close.

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