The scrip of Max India Ltd today hit the 20 per cent upper circuit filter on the buzz that the company was close to selling its 10 per cent stake in Hutchison Max India to foreign investors, dealers said.
The company has been consistently reducing its stake in Hutchison. The stock closed at Rs 75.20 with a combined volume of 1.62 lakh shares on the BSE and NSE.
Max India has a significant presence in telecommunication services, electronic components distribution, speciality plastic films and bulk pharmaceuticals. These diversified businesses are organised as Max India's 100 per cent-owned business units (BU) and equity sharing joint ventures.
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Starting early 1999, Max has refocused itself into building a company based on the knowledge platform. Max is building businesses in the emerging knowledge-based areas of healthcare, life insurance and information technology.
Max India has posted a net profit of Rs 0.49 crore for the quarter ended December 31, 2001 compared to a net profit of Rs 2.85 crore in the corresponding period last fiscal. Total income increased from Rs.30.61 crore in DQ 2000 to Rs 46.11 crore in DQ 2001.
Max India recently approved a proposal to trade in V-SAT hardware/equipment. In December 2001, Max India had announced that it has acquired 85 per cent in MMK, a company which will provide consultancy, specialised medical and non-medical services as well as equipment to the healthcare sector.
MMK is expected to be the vehicle through which MIL will make investments in the 200-bed super speciality hospital project that will come up at Saket in New Delhi in the next 18 months.
MIL has paid a sum of Rs 12.45 crore (including premium part of Rs 35.29 per share) to the total paid-up capital of Rs 13.95 crore for the MMK stake. The balance 15 per cent is being held through an investment vehicle.