Max India declines on profit booking

The stock dipped 3% to Rs 540, extending its previous day's 4% fall on the BSE.

Max India has dipped 3% to Rs 540, extending its previous day’s 4% fall on the BSE, after the company said that its board of directors approved to divest 23% stake in its health insurance company Max Bupa to its foreign partner Bupa for Rs 191 crore.

After this transaction, Bupa will raise its stake to 49% from 26% that it holds at present. Correspondingly, Max India's shareholding in Max Bupa will come down to 51% from the present level of 74%. The proposal is subject to the approval of Foreign Investment Promotion Board (FIPB) and Insurance Regulatory and Development Authority of India (IRDA), Max India said in a statement.

Further, the board also approved a capital contribution of up to Rs 150 crore by the company in Max Healthcare Institute, an equal joint venture between the company and Life Healthcare, South Africa, for its proportionate share of 46% equity stake in Max Healthcare, to enable Max Healthcare acquire a controlling stake of 51% in Saket City Hospitals, Max India said.

The stock hit a record high of Rs 586 in intra-day trade on November 20, 2015. It rallied 11% in past seven trading sessions as compared to less than 1% gain in the S&P BSE Sensex.

At 10:53 AM, the stock was down 2% at Rs 545 on the BSE. A combined 207,348 shares changed hands on the counter on the BSE and NSE so far.