Moneycontrol Bureau
Shares of Max Ventures and Industries (MVIL), a part of the USD 2 billion Max Group, started off first trade below Rs 45 (pre-opening price) and hit an intraday low of Rs 42.75, down 5 percent. Exchanges had fixed Rs 45 as its previous close.
However, immediately the stock rebounded 5 percent to Rs 47.25 on the National Stock Exchange. More than 24 lakh shares already traded on the exchange.
Exchanges have fixed 5 percent circuit limit (on both sides) for the stock.
Max Ventures (formerly known as Capricorn Ventures) is the holding company for Max Speciality Films, an innovation leader in the speciality packaging films business. The company has also recently incorporated a wholly owned subsidiary, Max Estates, which will undertake real estate development projects.
Promoters - Siva Enterprises & PVT Ventures - today have made open offer for acquisition of up to 1.84 crore shares (representing 34.6 percent paid up equity) from shareholders of Max Ventures at Rs 31.50 apiece. Axis Capital is manager to the offer.
Analjit Singh, chairman, MVIL had earlier announced in January 2015 a voluntary open offer for buying up to an additional 34.5 percent stake in MVIL at an approximate company valuation of Rs 168 crore for 100 percent in MVIL.
Currently Siva Enterprises & PVT Ventures (acquirers), which are controlled by Analjit Singh and/or his relatives, do not hold any equity shares in MVIL while promoter group holds 40.40 percent stake.
"Both companies aims to acquire up to 34.60 percent stake in Max Ventures under the open offer, which assuming full acceptance, would result in the acquirers and other promoter & promoter group entities holding up to 75 percent of the share capital of MVIL," the company says in its open offer filing.
Sahil Vachani and Tara Singh Vachani are promoters of Siva Enterprises. Sahil is also the managing director & chief executive officer of MVIL.
Analjit Singh and Neelu Analjit Singh are directors & promoters of PVT Ventures. Analjit is also the promoter, director & chairman of MVIL.
Max Ventures is the second company that started trading following the demerger of the erstwhile Max India.
The erstwhile Max India had demerged into three separate companies (Max Financial Services, Max Ventures and Max India) on January 15 2016, to provide sharper focus to each operating business and unlock shareholder value.
Post restructuring, the erstwhile Max India’s existing shareholders retain one equity share of Rs 2 in Max Financial Services. They additionally received one equity share of Rs 2 each of the new 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.
Max Financial Services (previously known as Max India), which had already started trading ex-demerger on January 27, focuses on managing the group's flagship life insurance business through its 68 percent shareholding in Max Life.Max Life recently entered into a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company and Max Financial Services into HDFC Standard Life Insurance Company by way of a scheme of arrangement.
The second holding company, which retains the name Max India Limited, manages investments in the high potential health & allied businesses – Max Healthcare, Max Bupa and Antara Senior Living. It is expected to be listed by the end of June 2016.Posted by Sunil Shankar Matkar
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