Max India shares gained as much as 6.6 per cent intraday on Monday after the company informed BSE on Thursday after market hours that it has got High Court nod for restructuring and the company’s demerger into three separate listed entities will be effective from January.
At 1.37 pm, the share price of Max India was trading 3.90 per cent up at Rs 515.45. The scrip opened at Rs 514 and had touched a high and low of Rs 529 and Rs 508.05, respectively, in trade so far. Sensex was up 150 points, or 0.58 per cent, at 25,988.84.
Later the scrip closed 3.54 per cent up at Rs 513.65.
“The High Court of Punjab and Haryana vide its order dated December 14, 2015 approved Max India’s Composite Scheme of Arrangement for the demerger of the company,” Max India said in a BSE filing.
On the effective date, the existing company, Max India will be remained as Max Financial Services. Max Financial Services is expected to trade ex-demerger from next month, and the other resulting companies from February 2016.
In a BSE filing, Max India said, “ The demerged Max Financial Services Ltd’s stock will start trading on the BSE as well as the NSE in a week from the effective date and the two additional companies are anticipated to list in about 45 days from the effective date.”
Post demerger, the group will have three separate business verticals – Max Financial Services for life insurance; Max India Ltd for health care, health insurance and allied businesses; and Max Ventures and Industries for manufacturing activities.
After the restructuring, Max India’s existing shareholders will retain one equity share of Rs 2 in Max Financial Services Limited. They will additionally get one equity share of Rs 2 each of the new company Max India for every one equity share held in Max Financial Services and one equity share of Rs 10 each of Max Ventures and Industries Limited for every 5 equity shares of Rs 2 each held in Max Financial Services.