Max India Thursday said it has approved divestment of its entire stake of over 85 per cent in subsidiary firm Pharmax Corporation Ltd to a wholly-owned subsidiary of group firm Max Ventures and Industries Ltd for Rs 61.2 crore.
The company at its meeting held on June 26, 2019 has considered and approved a proposal relating to divestment of entire equity shareholding of the company in its subsidiary Pharmax Corporation Ltd (equivalent to 85.17 per cent share) to Max Estates Ltd, Max India said in a regulatory filing.
Max Estates is the wholly-owned subsidiary of Max Ventures and Industries Ltd (MVIL).
The stake sale for an aggregate consideration of Rs 61.20 crore is to be executed amongst the company, Max Estates and Pharmax Corporation, it said.
The stake sale transaction is expected to be completed within this financial year, Max India said.
"Rs 61.20 crore shall be received by the company against divestment of 85.17 per cent equity stake in Pharmax," it said.
MVIL is one of the three listed companies of Max Group.
Max Estates is engaged in the business of development, selling, leasing and licensing of real estate and intends to redevelop and lease out the aforesaid (Pharmax) property post-acquisition, it added.
The promoters of Max India (Analjit Singh and family members) own 40.93 per cent stake in Max India and 47.15 per cent stake in MVIL.
Max India also holds 15 lakh or 9 per cent cumulative redeemable preference shares in Pharmax which are due for redemption on or before March 2020.
"Pharmax has not paid any dividend on the shares since the issue date (April 1, 2000). As at March 31, 2019, the total cumulative dividend outstanding on the preference shares is Rs 25.65 crore," it further said.
Shares of Max India Thursday closed 0.52 per cent lower at Rs 67.50 on the BSE, while MVIL closed 0.23 per cent up at Rs 42.70.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)