Max Financial Services shares declined over 3 percent intraday Monday after a media report indicated that Goldman Sachs is looking to sell its stake in the company.
"A private equity fund managed by Goldman Sachs is looking to sell its 15 percent stake in Max Financial in a Rs 2,400 crore deal expected through secondary market trades, generating a nearly threefold return in dollar terms on a seven-year-old investment for the Wall Street bank," a media report said quoting unnamed sources.
Goldman, which first invested in the Analjit Singh-promoted company in 2009 through a compulsory convertible debenture issue, will be reaping the benefits of a stock market rally and a sharp spike in share prices after a three-way merger between Max Financial Services' insurance business and HDFC Standard Life, the report added.
As of June 2016, Goldman Sachs held 15.46 percent stake in the company through two entities - subsidiary Xenok (9.02 percent) and Mauritius based GS Mace Holdings (6.44 percent).
Other major foreign shareholders are Moneyline Portfolio Investments (9.95 percent stake) and International Finance Corporation (3.09 percent).
At 10:28 hours IST, the scrip of Max Financial Services was quoting at Rs 572.90, down Rs 16.95, or 2.87 percent on the BSE.
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