Max India Limited on Friday (15 January) announced its demerger into three listed companies so as to provide its investors with specific and undiluted access to its diverse lines of businesses and unlock shareholder value.
Post the demerger, which became effective today, the Max Group has been spun-off into three separate holding companies--Max Financial Services Ltd, Max India Ltd and Max Ventures & Industries Ltd.
“The demerger will provide investors options to invest in different verticals of the company, which they find most suitable for them. By creating the company in three parts, we would be able to increase investor interest in the firm,” said Analjit Singh, Founder & Chairman Emeritus, Max Group.
He further said that he is stepping down form the post of Group Director and Rahul Khosala, the current managing director of the group will take over Singh’s position.
Analjit Sigh will now be the founder and chairman emeritus of Max Group. Mohit Talwar, currently deputy managing director of Max India, is being elevated to the position of managing director, Max Financial Services and Max India.
HSBC India's former chairman Naina Lal Kidwai joins the Max Group as chairman of Max Financial Services.
With the demerger, Max Financial Services becomes first Indian listed company exclusively focused on life insurance. The company will be listed on the bourses by month end. The other two holding companies are expected to be listed by March this year.
Post restructuring, the erstwhile Max India’s existing shareholders will retain one equity share of Rs 2 in Max Financial Services Ltd. They will additionally get one equity share of Rs 2 each of the new company Max India Ltd for every one equity share held in Max Financial Services and one equity share of Rs 10 each of Max ventures and Industries Ltd for every 5 equity shares of Rs 2 each held in Max Financial Services. The company has applied for approval from the Foreign Investment Promotion Board (FIPB) to enable issuance of the aforesaid new share.
BW Reporters
The author is Senior Correspondent with BW Businessworld
