Max India soars 7% as NCLT approves composite scheme; sets record date for demerger

So far, on Sensex, Max India stock has gained by nearly 7% with an intraday high of Rs68.95 per piece.

Jun 02, 2020 02:06 IST India Infoline News Service

On Tuesday, investors gave thumbs up to Max India as the NCLT approved their unique composite scheme involving demerger of the current business and listing of new Max India along with Max Healthcare. So far, on Sensex, Max India stock has gained by nearly 7% with an intraday high of Rs68.95 per piece.

The National Company Law Tribunal (NCLT) has approved the composite a scheme involving the merger of the healthcare assets of Max India into Max Healthcare and demerger of the residual businesses.

Analjit Singh, Founder & Chairman, Max Group, said, “The demerger will enable Max India to focus on the high potential category of Senior Care. The Max Group has had a track record of redefining sectors and in turn creating value for its shareholders."

At around 2.48 pm, Max India stock price was trading at Rs68.40 per piece up by nearly 6%.

As per the Composite Scheme, the transaction is being completed through the following steps, as per the filing

Before the merger transaction involving Radiant and Max Healthcare, Max India demerged its non-healthcare businesses including Antara and Max Skill First into ‘Advaita’, which will eventually be listed separately on both BSE and National Stock Exchange.

Shareholders of Max India will receive one share of Rs10 each of Advaita for every five shares of Rs2 each that they hold in Max India.

Following the demerger and the spin-off, Radiant’s healthcare assets merged in Max Healthcare with the simultaneous merger of the residual Max India in Max Healthcare.

As a result of this merger, shareholders of Max India will receive 99 equity shares of the Merged Entity of Rs10 each for every 100 equity shares of Rs2 each that they hold in Max India.

Post-merger, Max India stood dissolved without being wound up and subsequently, the equity shares of the Merged Entity and the new Max India (‘Advaita’) will get listed on BSE and NSE.

Max India's composite scheme has been declared effective starting 1 June 2020.

The group has set June 15, 2020, as the record date to carry demerger transaction. Further, the listing of new Max India and Max Healthcare is expected to take place in August 2020. 

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