Max Financial vaults as board approves fund raising

Max Financial Services advanced 1.88% to Rs 434 at 15:09 IST on BSE after the company's board of directors authorised the company to borrow an aggregate amount of upto Rs 5000 crore in one or more tranches.

The announcement was made during market hours today, 21 March 2018.

Meanwhile, the S&P BSE Sensex was up 154.84 points, or 0.47%, to 33,151.60.

On the BSE, 41,000 shares were traded in counter so far compared with an average volume of 38,000 shares in the past two weeks. The stock had hit a high of Rs 442 and a low of Rs 427.50 so far during the day. The stock had hit a record high of Rs 683.20 on 16 May 2017. The stock had hit a 52-week low of Rs 418 on 20 March 2018.

The large-cap company has an equity capital of Rs 53.68 crore. Face value per share is Rs 2.

Max Financial Services said that the board of directors of the company at its meeting held today, 21 March 2018, considered raising of funds by the company by way of debt for the purpose of making investments in its subsidiary Max Life Insurance Company (Max Life) to enable Max Life to drive growth through acquisition opportunities and approved availing of borrowings in one or more tranches for an amount aggregating up to Rs 5000 crore.

The board further authorized the Investment and Finance Committee of the company to consider and approve various debt funding proposals, from time to time, within the overall limits approved by the board.

Max Financial Services' net profit rose 10.32% to Rs 88.80 crore on 15.81% rise in total income to Rs 119.86 crore in Q3 December 2017 over Q3 December 2016.

Max Financial Services is a part of the Max Group and the holding company of Max Life Insurance, India's largest non-bank, private life insurance.

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