Max Financial clarifies no debt exposure of promoters to Nippon Life; stock ends 2% up

Nippon India Mutual Fund owns 3.45% of the paid-up share capital of the company.

Jun 04, 2020 04:06 IST India Infoline News Service

The Max Group company Max Financial Services on Thursday clarified to stock exchanges saying that the company's promoters have no debt exposure to  Nippon Life India Asset Management (Nippon Life).

The clarification comes after when Max Financials was approached by investors on 2.89 lakh equity shares of the company sold by Nippon Life.

These investors sought clarification in regards to whether the shares sold by Nippon Life was an invocation of pledge on loans taken by Max Financial's promoters.

In a filing to exchanges, Max Financials said, "We wish to clarify that there is no debt exposure of Promoters to Nippon Life." Adding it says, "The sale is from their mutual fund investment."

Further, Max Financials highlights that, after the sale  of aforesaid shares, Nippon India Mutual Fund owns 3.45% of
the paid-up share capital of the company.

Post announcement, Max Financial stock price ended at Rs473.25 per piece on Sensex up by 2.06%.

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