Max India slips on IRDAI nod

Max India opened a tad higher at Rs.80.85 v/s previous close of Rs.80.40 but soon went down to an intraday low at Rs.76.70, a fall of almost 5%. Its 52-week high is at Rs.89.60 and low at Rs.54.10.

Yesterday evening, Max India announced that the Insurance Regulatory & Development Authority of India (IRDAI) has approved divestment of its 51% stake in Max Bupa Health Insurance Company Pvt. Ltd. (Max Bupa), to the leading Private Equity firm True North1.

The all-cash transaction announced in February 2019 valued Max Bupa at an enterprise value of Rs 1001 crore. Bupa, the existing joint venture partner in Max Bupa, remains committed to the joint venture and will continue to play an active role as before through its Board positions.

Post IRDAI approval, the transaction is now expected to be concluded within the next few weeks. All existing customer policies will continue unimpacted and all customer support channels will remain unchanged.