Shares of Max India dropped 13.5 per cent Wednesday after the company said it has sold its entire 51 per cent stake in Max Bupa Health Insurance Co Ltd (Max Bupa) to private equity firm True North Fund VI LLP for over Rs 510 crore.
The company's shares slumped 13.52 per cent to close at Rs 71.35 apiece on the BSE. During the day, it tumbled 15.57 per cent to Rs 69.65.
At the National Stock Exchange (NSE), shares plunged 13 per cent to close at Rs 71.60 apiece.
On the traded volume front, 4.44 lakh shares were traded on the BSE and over 56 lakh shares on the NSE during the day.
The stake has been sold either directly or through its affiliates, Max India said in a regulatory filing Tuesday.
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The board of directors of the company at its meeting held on Tuesday considered and approved a proposal related to divestment of the entire shareholding of the company in its material subsidiary -- Max Bupa Health Insurance Company Limited (Max Bupa) (equivalent to 51 per cent of Max Bupa's total issued and paid-up share capital) to True North Fund VI LLP, it said.
The proposed transaction is an all-cash deal and it values Max Bupa at an enterprise value of Rs 1,001 crore.
Max India said the deal has been at a consideration of Rs 510.51 crore, which the company will receive at the time of completion of the proposed transaction.
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