 "Max India gains on court approval for demerger")
Max India has gained 7% to Rs 530 on the National Stock Exchange (NSE) on back of heavy volumes after the company said it has got High Court approval for restructuring and the company's demerger into 3 separate listed entities will be effective from January.
“Max India board to announce effective date for demerger of company into 3 separate listed entities in January 2016 and Max Financial Services expected to trade ex-demerger in January 2016, and the other resulting companies in February 2016”, the company said in a statement.
On the effective date, the existing company, Max India will be renamed as Max Financial Services Ltd.
Through a demerger, the group will have three separate business verticals - Max Financial Services for life insurance; Max India Ltd for health care, health insurance & allied businesses; and Max Ventures and Industries Ltd for manufacturing activities.
Post 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 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.
The company said it has applied for approval from the Foreign Investment Promotion Board (FIPB) to enable issuance of the aforesaid new shares.
At 10:02 a.m. the stock was up 4.6% at Rs 519 on the NSE. The trading volumes on the counter jumped more than two-fold with a combined 580,222 shares changed hands on the NSE and BSE so far.
“Max India board to announce effective date for demerger of company into 3 separate listed entities in January 2016 and Max Financial Services expected to trade ex-demerger in January 2016, and the other resulting companies in February 2016”, the company said in a statement.
On the effective date, the existing company, Max India will be renamed as Max Financial Services Ltd.
Through a demerger, the group will have three separate business verticals - Max Financial Services for life insurance; Max India Ltd for health care, health insurance & allied businesses; and Max Ventures and Industries Ltd for manufacturing activities.
Post 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 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.
The company said it has applied for approval from the Foreign Investment Promotion Board (FIPB) to enable issuance of the aforesaid new shares.
At 10:02 a.m. the stock was up 4.6% at Rs 519 on the NSE. The trading volumes on the counter jumped more than two-fold with a combined 580,222 shares changed hands on the NSE and BSE so far.
