Max Financial Services shares soared 19.99 per cent intraday on BSE on Friday after HDFC informed bourses that Max Life Insurance and Max Financial Services will merge into HDFC Standard Life Insurance.
At 1.19 pm, shares of Max Financial Services were trading 13.26 per cent up at Rs 485.55. The scrip opened the day at Rs 460 and has touched a high and low of Rs 514.40 and Rs 460, respectively, in trade so far. Later, the scrip settled the day 10.29 per cent up at Rs 472.80.
On the other hand, HDFC shares gained as much as 2 per cent.
“The Board of Directors of HDFC Standard Life Insurance Company, Max Life Insurance Company Ltd and Max Financial Services Ltd… approved entering into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company Ltd and Max Financial Services Ltd into HDFC Life by way of a scheme of arrangement,” HDFC said in a NSE filing.
It a separate filing, Max Financial Services said the agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction.
According to reports, it will be the biggest consolidation in the country’s private insurance sector.