New Delhi: Max India's board on Tuesday approved a corporate restructuring plan to vertically split the company through a demerger into three separate listed companies to provide sharper focus on each business. Max India shares rose as much as over 11 per cent during Tuesday's session.
The board also approved divestment of its clinical research business.
"This structural reconfiguration readies us to capitalise on opportunities created by the anticipated all round growth acceleration and to henceforth look at the wider world of business opportunities," Max India chairman Analjit Singh said.
The three separate business verticals would look into life insurance, health and allied businesses, and manufacturing industries.
Upon the completion of the demerger, Max India is proposed to be named as Max Financial Services Ltd and would focus solely on the life insurance activity, through its 72.1 per cent stake in Max Life.
As of 2:26 p.m., shares in Max India were trading at Rs 492.40 apiece on the BSE, up 8.33 per cent from the previous close.