JOIN USMax India on Thursday said it has got High Court approval for restructuring and the company’s demerger into three separate listed entities will be effective from January, which give the company to focus sharply on its business verticals.
As per the company statement, Max Financial Services, earlier known as Max India, is expected to trade ex-demerger from next month, and the other resulting companies from February 2016.
“The High Court of Punjab and Haryana vide its order dated December 14, 2015 approved Max India’s Composite Scheme of Arrangement for the demerger of the company,” it said.
Upon receipt of the detailed certified order, the Company will file the same with the Registrar of Companies (RoC) for achieving ‘Effective Date’ of the demerger – the day the 3 legal entities will stand demerged.
As per the demerger, the group will have three separate business verticals — Max Financial Services for life insurance; Max India for health care, health insurance & allied businesses; and Max Ventures and Industries for manufacturing activities.
Max India board in January approved a corporate restructuring plan to vertically split the company through a demerger into three separate listed companies.
Besides approvals from the Sebi and the two stock exchanges BSE and NSE where it is listed, the company also received nod for delisting from Insurance Regulatory and Development Authority of India (IRDAI) and the Competition Commission of India (CCI).
Max India’s existing shareholders will retain one equity share of Rs 2 in Max Financial Services after restructuring. They will additionally get one equity share of Rs 2 each of the new company Max India for every one equity share held in Max Financial Services and one equity share of Rs 10 each of Max Ventures and Industries for every 5 equity shares of Rs 2 each held in Max Financial Services.
The company has applied for approval from the Foreign Investment Promotion Board (FIPB) to enable issuance of the aforesaid new shares.
The Max Group, with a consolidated turnover of consolidated turnover of Rs 14,877 crore in FY 2015 is a leading Indian multi-business corporate with a commanding presence in the Life Insurance, Healthcare and Health Insurance sectors.
It has a total customer base of over 7.5 million, nearly 300 offices spread across India and people strength of around 17,000 as on 31st March 2015.