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Max India rises after IRDAI approves divestment

Capital Market 

Max India gained 1.92% to Rs 79.80 after the company received insurance regulator's approval for divestment in subsidiary.

Max India said that Insurance Regulatory and Development Authority of India (IRDAI) accorded its approval to the proposed divestment of entire 51% shareholding of Max India held in its material subsidiary, Max Bupa Health Insurance Company, to True North Fund VI LLP.

The parties to the arrangement are in the process of completing certain conditions precedents to the aforesaid divestment and expect to complete the transaction in few weeks, consequent to which, Max Bupa Health Insurance Company shall cease to be a subsidiary of the company. The announcement was made during trading hours today, 3 December 2019.

Shares of Max India rose 4.86% in two trading sessions to its current market price of Rs 79.80 from its recent closing low of Rs 76.10 on Friday, 29 November 2019.

Meanwhile, the S&P BSE Sensex was down 184 points or 0.45% to 40,618.61.

On the technical front, the stock's RSI (relative strength index) stood at 63.645. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was currently trading above its 50-day moving average (DMA) placed at Rs 69.40, as well as above its 200 DMA placed at Rs 67.10.

Max India reported a consolidated net loss of Rs 7.92 crore in Q2 September 2019 as compared to a net loss of Rs 40.56 crore in Q2 September 2018. The consolidated total income rose 37.2% to Rs 51.84 crore in Q2 September 2019 over Q2 September 2018.

Max India is engaged in the business of investments and providing consultancy services to group companies. The company's segments are healthcare business, business investments, health insurance, senior living and others.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 03 2019. 14:40 IST