As per recent news in ET and other publications Goldman Sachs is buying 9.4 % in max India for 540 Cr. Source ET
The key point to observer is that , these are convertible debentures that means company will be paying 12% interest rate on these for 15 months.
What are some key business Max India doing ?
a) Life Insurace ( via New York Life )
b) Healthcare ( max hospitals )
c) contract research
At present more than 90% of revenue is coming from insurance business. Company is still loosing money. Then does it make sense for a common investor to follow Goldman. Should you apply rule that if Goldman is putting 500 Cr I can put some money in it.
I don't agree with it . Specially consider that Goldman is being paid at 12% for waiting on sideline. They have much more bargaining power then you are and insurance business like Telecom is soon going to be a cut throat competition.
My opinion , look for other options like ICICI and HDFC who has insurance business and more robust than Max. As the insurance IPO gets into market the value will unlock.
Insurance industry in India is dominated by LIC and GIC who take chunk of life insurance premiums with poor service to customers.The opportunities are huge for company life MAX. I think that's the reason Goldman is investing in it.You are right that other players like ICICI have some advantage due to their own distribution network but more and more banks are working jointly with insurance providers and that should not really be a big issure for max.