The existing company Max India will be renamed Max Financial services and the other two businesses will be listed post the demerger.
The Max India board today approved the company's corporate restructuring plan that will result in a three-way split. The existing company Max India will be renamed Max Financial Services and the other two businesses will be listed post the demerger.
The first resulting company post the demerger will be named Max India and will manage the investments in health & allied business. The second company will be named Max Ventures and will house the investment activity in the group's manufacturing arm.
The three separate business verticals would look into life insurance, health and allied businesses, and manufacturing industries.
Further the promoter of the Max India Analjit Singh announced his intention to make voluntary open offer to buy up to an additional 34.5 per centstake in Max Ventures and
Industries Ltd which will be listed post the demerger of Max India.
The company's cash reserves of Rs 605 crore will be split between the three listed companies and Max India will sell its clinical research business for USD 1.5 million to Canadian company JSS Medical.
Here's how the stocks will be split:
An investor will get one share in the demerged Max India for every share held. For every five Max India shares held, an investor will get one share in Max Ventures.
The appointed date for the demerger is April 1, 2015.
Nidhesh Jain of Espírito Santo believes the demerger is a positive on many fronts. He believes the demerger will allow investors get exposure to pure life insurance play as Max India is the only listed life insurance company.
Furthermore, he believes the divestment of Max' clinical research business is important as nobody on the street was giving any valuation to that entity and that will change now.
And lastly, Jain believes the demerger assures investors on the capital allocation strategy of the company.
"Post this demerger they deliver a clear segregation among these three major verticals. This will allay the investors fears. So, investor who wants to take exposure to life insurance can now take the exposure which was not available earlier," he adds.
(With inputs from PTI)
Max India stock price
On January 27, 2015, Max India closed at Rs 492.75, up Rs 38.20, or 8.40 percent. The 52-week high of the share was Rs 505.00 and the 52-week low was Rs 177.60.
The company's trailing 12-month (TTM) EPS was at Rs 5.70 per share as per the quarter ended September 2014. The stock's price-to-earnings (P/E) ratio was 86.45. The latest book value of the company is Rs 119.57 per share. At current value, the price-to-book value of the company is 4.12.
Anda sedang membaca artikel tentang
Max India demerger gets nod; co to be renamed Max Fin Srvs
Dengan url
http://kebugaranhidup.blogspot.com/2015/01/max-india-demerger-gets-nod-co-to-be.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Max India demerger gets nod; co to be renamed Max Fin Srvs
namun jangan lupa untuk meletakkan link
Max India demerger gets nod; co to be renamed Max Fin Srvs
sebagai sumbernya
0 komentar:
Posting Komentar