Max India gets sick

Max India is a big loser on the bourses today morning. And not surprising too. Its wholly subsidiary, Max Healthcare is in the eye of a storm.

On 8th December, the Delhi Govt cancelled the license of Max Hospital’s Shalimar Bagh unit after a premature baby was wrongly declared dead last week.

There was a panel appointed by the Delhi Govt which looked into the case and found the hospital administration guilty of not following prescribed medical norms in dealing with newborn infants. In fact the panel stated that Max Hospital is a habitual offender and three notices were served earlier to it. And, it has been found guilty in those cases too. The hospital has been issued three notices over lapses involving the EWS (extremely weaker section) quota patients. The action taken on it is in continuation of effect of previous notices.

The stock price, which has been weak for the past whole week, and today morning, it fell almost 5% to Rs.127.95; its 52-week low is at Rs.119 and volumes have jumped up over 7.5 times.