Max India Share Rose by 8% on IRDAI's Approval for Disinvestment Plan

Shares of Max India rose more than 8% on Bombay Stock Exchange on 3rd December once IRDAI (Insurance Regulatory and Development Authority of India) approved the sale of its 51% stake in Max Bupa Health Insurance Company Limited to a private equity firm named True North.

On 3rd December, Max India in a regulatory filing stated that IRDAI has approved for disinvestment of complete shareholding in its subsidiary Max Bupa to True North.

The parties are looking forward to completing some precedents to the previously mentioned disinvestment. The transaction is expected to be completed within a few weeks, followed by which Max Bupa will cease to be a subsidiary of Max India, as stated in the regulatory filing.

On 26th February 2019, Max India notified the stock exchange about the disinvestment proposal for disinvestment of its full shareholding in Max Bupa. This all-cash transaction was of 51% stake in Max Bupa to True North Fund VI LLP.