Max Financial at new high

Max Financial Services is currently the top gainer on the BSE. The stock, which had closed yesterday at Rs.516.45, opened higher today at Rs.541.10 and went on to hit a new 52-week high at Rs.597.60. Volumes are up over 6 times.

The company, which is the holding company of Max Life Insurance is up on unconfirmed news report that Axis Bank is acquiring a 20% stake in the insurance arm through fresh issue of equity.

This differs from the earlier plan of Max of making a complete exit from insurance sector.

Axis Bank as such contributes around 55% of Max Life’s revenue and this news, once confirmed, will be good for Max Financial as it will once and for all end all uncertainty and with Axis Bank as a partner, it will be more sound and solid.