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.
Besides, Max's clinical research business will be divested to a Canadian company for USD 1.5 million.
Max India promoter and chairman Analjit Singh said foreign partners, Mitsui and Bupa, have expressed interest in raising their stakes in life insurance venture and health insurance company to 49 per cent.
'Max Financial Services Ltd' would focus solely on flagship life insurance business through its 72.1 per cent stake in Max Life, making it the first Indian listed company exclusively focused on life insurance, the company said in a statement after a board meeting today.
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The company said the ordinance has "created renewed investor interest in the life insurance sector".
"The new government is setting a rapid pace for economic reforms. 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," Singh told reporters here.
The appointed date for the demerger is April 1, 2015, and the demerger is expected to be completed within the next six to nine months.
Max India currently has cash reserves of Rs 605 crore as on December 31, 2014. It is proposed to split the cash reserves as on appointed date of April 1, 2015 between the three listed companies such that Max Financial Services will hold Rs 150 crore, MVIL will hold Rs 10 crore and the balance, likely to be over Rs 400 crore will be held by the newly formed Max India Limited.