Moneycontrol Bureau
Shares of Max India gained more than 7 percent intraday Monday after the Bupa decided to increase stake in Max Bupa, the insurance joint venture between the company and Bupa.
Max Bupa Health Insurance is set to become one of the first companies in India to benefit from the proposed increased limit for foreign direct investment (FDI) in insurance.
Following the Insurance Laws Amendment Ordinance 2014 receiving legislative assent in the 2015 Budget Session of Parliament, Bupa, the international healthcare group, proposes to increase its stake in Max Bupa from 26 percent to 49 percent, said the insurance company in its release statement.
Bupa will submit formal applications to the relevant authorities for the regulatory approvals required in order to increase its stake, it added.
Max Bupa is a joint venture between Max India, which owns 74 percent of Max Bupa, and Bupa, the UK-headquartered global healthcare group, which owns 26 percent.
"Bupa's intention to increase its stake is testimony to the huge opportunity for health insurance in India and Max India's reputation in successfully managing joint ventures," said Rahul Khosla, Managing Director, Max India.
The application to increase Bupa’s shareholding in Max Bupa will be subject to successful completion of the law-making process as well as all relevant regulatory and legal approvals.
At 13:08 hours IST, the stock was quoting at Rs 396.65, up Rs 8.95, or 2.31 percent amid huge volumes on the Bombay Stock Exchange.
Posted by Sunil Shankar Matkar
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