Shares of Max India saw a sudden gain of over 8 percent on BSE on December 3 after IRDAI gave a nod to the company’s divestment plan for its subsidiary Max Bupa Health Insurance Company Limited.
In a regulatory filing on December 3, Max India said that Insurance Regulatory and Development Authority of India (IRDAI) accorded its approval for the divestment of entire shareholding in its material subsidiary Max Bupa Health Insurance Company Limited to Fettle Tone LLP ( an affiliate of True North Fund VI LLP).
The parties to the arrangement are in the process of completing certain conditions precedents to the aforesaid divestment and expect to complete the transaction in few weeks, consequent to which, Max Bupa Health Insurance Company Limited shall cease to be a subsidiary of the company, said Max India in the regulatory filing.
On February 26, 2019, Max India had informed the stock exchange regarding the proposal for divestment of entire shareholding of the company in Max Bupa Health Insurance Company Limited, which was equivalent to 51 percent of Max Bupa’s total issued and paid-up equity share capital, to True North Fund VI LLP.
Shares of Max India traded 4.98 percent up at Rs 82.20 on BSE around 12:35 hours IST.
News Source: Moneycontrol