This stock rose over 16% today, could have made you rich; do you own it?
Reason for such upbeat in Max India, came after when the company clarified over a news which stated that they are planning to exit from their health insurance business.
After performing strongly in past two days, there is a sudden reverse in benchmark indices Sensex and Nifty 50 performance on Friday. Sensex has been hovering below 36,000-mark, trading in red. However, there was one stock which was saw an opposite trend, in fact massive buyings from investors. It was the share price of Max India that surged strongly today, so much so, that the company has given over 16% return in just one day.
At around 1221 hours, Max India share price was trading at Rs 76.55 per piece above Rs 9.75 or 14.60% on Sensex. However, in early opening sesion, the company has earmarked an intraday high of Rs 77.75 resulting in overall gains of 16.39% so far on the index.
Reason for such upbeat in Max India, came after when the company clarified over a news which stated that they are planning to exit from their health insurance business. A clarification was sought from stock exchanges, and Max India has finally given its answers, making investors very happy.
On Thursday, Max India in a notification, said, "We hereby submit that no development has occured which requires a disclosure by the company under Securities and Exchange Board of India (Listing obligations and disclosure requirements) Regulation,2015."
"We are conscious of our obligations under the said regulations. If an 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," the statement added.
This came after Mint reported that Private equity firm True North Managers Llp is close to buying out Analjit Singh-promoted Max India Ltd’s entire 51% stake in standalone health insurer Max Bupa Health Insurance Co. Ltd, while citing two people with direct knowledge of the discussions.
— Zee Business (@ZeeBusiness) December 14, 2018
Reportedly, 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.
However, the comment from Max India does not shows clarity in itself, as they have only mentioned the importance of disclosures but did not denied the news in fact stated that if such proposal is taken place they will inform the exchanges.
Well, whether Max India decides to exit is health insurance business will be keenly watched. But for now, that clarity has definitely stirred some love in the eye of investors. If you are among those investors who have bought Max India shares then you stand rich today.