Max India shares fell 4 per cent on Wednesday after the company said insurance regulator Irdai has approved the sale of its 51 per cent stake in Max Bupa Health Insurance Company to private equity firm True North.
The scrip declined 3.48 per cent to close at Rs 77.60 on the BSE. During the day, it fell 4.85 per cent to Rs 76.50.
At the NSE, it dropped 3.97 per cent to close at Rs 77.30.
With the deal getting regulatory approval, Max India will exit the health insurance business.
The all-cash transaction announced in February 2019 valued Max Bupa at an enterprise value of Rs 1,001 crore, Max India said in a statement on Tuesday.
Post Irdai's approval, the transaction is now expected to be concluded within few weeks, it said, adding, all existing customer policies will continue unimpacted and all customer support channels will remain unchanged.
True North (formerly known as India Value Fund Advisors - IVFA) was established in 1999 with a focus on investing in and transforming mid-sized profitable businesses into world-class industry leaders.
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