Max India Falls Almost 14% After Selling 51% Stake in Max Bupa to True North

MAX India encountered a fall of 14% from its previous close of Rs. 82 to intraday low of Rs. 71, following its announcement of Board’s approval of selling 51% stake in Max Bupa Health Insurance for Rs. 510.51 Crore to True North.

The fall of 27th February, 2019 intraday is lowest for the week and the month. The stock opened at a price of 83 points and made intraday high of 84 points before the fall. The stock topped the loser list in Bombay Stock Exchange and in the all securities section in National Stock Exchange. The share is being traded at a volume of Rs. 3.4 Lakh and Rs. 43 Lakh on BSE and NSE, respectively.

The share price fell almost 25% over one year and around 5% in the week. Max India moved below its 30 day, 50 day, 150 day and 200 day simple moving average on both the exchanges on 27th February, 2019.

The 51% stake of Max Bupa has been sold to True North, the famous Private Equity firm. The all-cash transaction values Max Bupa at an enterprise value of Rs. 1001 Crore and is subject to requisite regulatory approvals.