Max India splits into three listed companies

Multi-business Group Max India Ltd on Friday announced its demerger into three listed companies - Max Financial Services Ltd. (MFS), Max India Ltd. and Max Ventures & Industries Ltd (MVIL). The move has come to provide the company’s investors with specific and undiluted access to its diverse lines of businesses, unlock shareholder value and enable sharper focus on each operating business, Max India Ltd said in a filing to the Bombay Stock Exchange on January 15, 2016. The first holding company, MFS will focus solely on managing the Group’s flagship life insurance business, through its 72 per cent shareholding in Max Life, making it the first Indian listed company exclusively focused on life insurance, it added. The company further said that the second holding company, which retains the name Max India Ltd, will manage investments in the high potential Health and Allied businesses - Max Healthcare, Max Bupa and Antara Senior Living. The demerger will provide these businesses closer attention to fulfill their tremendous potential. Moreover, the third holding company, MVIL will manage the investment in the manufacturing subsidiary, Max Speciality Films. It will also evaluate new ideas in the ‘wider world of business’, including but not limited to sectors such as real estate, education and technology, the company said in a statement. Commenting on the development, Max Group, President, Rahul Khosla said, “The demerger will lead to a more specific value discovery for each vertical. Moreover, it will provide sharper management focus to each underlying business. Due to their inherent features and priorities, each of the three holding companies will be optimally positioned to guide their operating businesses on their respective growth journeys.” Meanwhile, shares of the company closed at Rs 476.15 apiece, down 0.69 per cent, from previous close on BSE.