Max India shares hit 5% lower circuit on stock exchanges relisting
2 min read . Updated: 28 Aug 2020, 12:00 PM IST- The relisting of new Max India follows Max Healthcare’s stock markets debut last week
Shares of Max India were relisted on the stock exchanges at Rs79.95 on Friday. The stock, soon after, hit 5% lower circuit at Rs76 a piece. The relisting of new Max India follows Max Healthcare’s stock markets debut last week.
The listings are due to a comprehensive scheme announced last year, which involved a series of transactions, including the demerger of KKR backed Radiant Lifecare’s assets into Max Healthcare, which resulted in listing of merged Max Healthcare.
In a company rejig, Max India Limited (earlier Advaita Allied Health Services Limited) was formed merging healthcare assets of the erstwhile Max India into Max Healthcare and demerger of the senior care and other businesses of Max India into Advaita on 1 June. Each shareholder has received one share of new Max India with a face value of Rs10 for every 5 shares of erstwhile Max India, which has a face value of Rs2 each.
“The listing will unlock value for shareholders of erstwhile Max India, allowing them with pure play access to the sunrise and high-potential senior care sector," said a company statement.
Max India plans to invest over Rs300 crore in the next 3-4 years across these new assisted care services business lines and its existing business line of residences for seniors. The new Max India is the holding company of Max Group’s Senior Care business, Antara, and a skilling company, Max Skill First lines of businesses. Antara’s senior living business focuses on providing care, comfort and companionship to seniors.
“Max India also has ₹400 crore treasury corpus, besides a rent potential commercial asset in Delhi NCR on its balance sheet. It plans to utilize the corpus for investing in Antara’s value creation journey and is also evaluating options such as capital reduction, subject to the approval of its board," said a company statement.
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