Max India will exit the health insurance business a decade after it entered as a promoter. This will mark the first exit by an Indian promoter in the domestic health insurance industry, added the report.
“If and when any such proposal is proposed to be considered by the board of directors of the company warranting disclosures, the Company shall promptly comply with the disclosure obligations,” Max India said in clarification on the news
“We hereby submit that no development has occurred which requires a disclosure by the Company under Securities and Exchange Board of India (listing obligations and disclosure requirements), regulations, 2015. We are conscious of our obligations under the said regulations”, it added.
Max India, a multi-business corporate, owns and actively manages a 49.7% stake in Max Healthcare, a 51% stake in Max Bupa Health Insurance and a 100% stake in Antara Senior Living.
The stock of Max India hit a 52-week low of Rs 55 on November 21, 2018, correcting 59% from its 52-week high level of Rs 133 recorded in December last year.
The company and the healthcare sector faced multiple regulatory hurdles during last financial year. These include price capping on products such as keen implants and stents, margin capping on consumables and as well as ongoing concerns such as reduction on inpatient tariff and medical device price control.
At 12:35 pm; Max India was trading 15% higher at Rs 76.50 on the BSE. In comparison, the S&P BSE Sensex was unchanged at 35,929 points. The trading volumes on the counter jumped more than 15-fold with a combined 4.61 million equity shares representing 1.7% of total equity of the company changed hands on the NSE and BSE so far.