Shares of Max India today surged over 11 per cent before settling higher by 8 per cent, adding Rs 1,017 crore to its market capitalisation...
Shares of Max India today surged over 11 per cent before settling higher by 8 per cent, adding Rs 1,017 crore to its market capitalisation.
Max India board today approved a corporate restructuring plan to vertically split the company through a demerger into three separate listed companies to provide sharper focus on each business.
The company’s board also approved divestment of its clinical research business.
Shares of the company opened on a bullish note and then surged 11.09 per cent to touch an intra-day high of Rs 505 on the BSE.
Later, the shares closed at Rs 492.75, up by 8.4 per cent over the previous close.
Pursuant to the surge in shares, market capitalisation of the company surged by Rs 1,017 crore to Rs 13,131.39 crore today.
“This structural reconfiguration readies us to capitalise on opportunities created by the anticipated all round growth acceleration and to henceforth look at the wider world of business opportunities,” Max India Chairman Analjit Singh said.
The three separate business verticals would look into life insurance, health and allied businesses, and manufacturing industries.
Further the promoter of the Max India Analjit Singh announced his intention to make voluntary open offer to buy up to an additional 34.5 per cent stake in Max Ventures and Industries Ltd which will be listed post the demerger of Max India.
Upon the completion of the demerger, Max India is proposed to be named as Max Financial Services Ltd and would focus solely on the life insurance activity, through its 72.1 per cent stake in Max Life.