Promoter entity sells 3.3% stake in Max Financial for Rs 982 crore; IMF, other funds buy
Max Financial Services, on Thursday, sold 3.3% stake in the company for Rs 982 crore.
The promoter group entity sold 1.12 crore shares in Max Financial at Rs 873 apiece. This is at a discount of around 1% to Wednesday’s closing price of the stock.
As of June-end, Max Ventures Investment held a 10% stake in the financial services company.
Despite the selling, shares of Max Financial ended nearly 3% higher at Rs 904.35.
This was due to strong appetite for the stock among institutional investors.
Canara Robeco Mutual Fund, ICICI Prudential Mutual Fund, Kotak Mahindra Mutual Fund, Nippon India Mutual Fund bought shares through separate deals on the exchanges, thereby increasing their stake further in the financial services major.
Nippon India held a 4.3% stake in the company as of June-end, while Kotak Mahindra MF held a 3% stake. Canara Robeco MF owned 1% stake as of June-end.
Kotak Mahindra Mutual Fund, through various schemes, bought 9,19,339 shares for Rs 80.3 crore.
Among global investors, International Monetary Fund, UBS, Morgan Stanley, and Goldman Sachs were the major buyers.
Besides these, Kotak Mahindra Life Insurance also picked some shares of the company, and became a new investor.
The International Monetary Fund bought 80,661 shares of Max Financial for Rs 7 crore.
IMF did not hold any stake prior to this, as per exchange data.
Max Financial also counts the Government of Singapore among its key investors in the FPI category. As of June end, the Government of Singapore held 1.7% stake in the company.
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