Max India shares crashed 26 per cent on the National Stock Exchange as the three-way demerger of the company came into effect on Wednesday. The record date for the demerger is January 28, 2016.
Max India has been split into three companies - Max Financial Services, Max India and Max Ventures and Industries. Current listed entity - Max India - will be renamed as Max Financial Services. It will house the life insurance business of the group.
The other two entities - Max India (healthcare business) and Max Ventures and Industries (manufacturing business) - will be listed next month.
"Shareholders having 100 shares of Max Financial Services of face value Rs 2 in their demat account as on the record date of January 28, will get will get 100 shares of restructured Max India of face value Rs 2 and 20 shares of Max Ventures and Industries of Rs 10 face value," the company said.
Max India shares hit a low of Rs 348 on the NSE and Rs 398 on the BSE today.