Shares of Max India on Wednesday fell sharply by 15.59 per cent following the demerger of the company into three to-be-listed entities.
Max India demerged itself into three entities on Januray 15. The three Max Group entities, to be listed by March end are: Max Financial Services, Max India and Max Ventures and Industries.
The stock on Wednesday opened at Rs 419.00 and closed at Rs 398.10, down 15.59 per cent on the BSE. During the day, it touched a high of Rs 419.00 and a low of Rs 398.10.
Market experts said shares of Max India started trading ex-demerger from Wednesday and hence the decline in the stock.
The record date for determining the entitlement of equity shares of demerged companies is January 28.
The demerger, announced in January 2015 was concluded after consent and approvals from the High Court of Punjab and Haryana, the Insurance Regulatory and Development Authority of India (IRDAI), the Securities and Exchange Board of India (SEBI) and the Competition Commission of India (CCI).
Post restructuring, the erstwhile 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 Ltd 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.