Healthcare firm Max India surged by as much as 9 per cent in opening trade on the bourses on Wednesday after the company said it will sell a 26 per cent stake in its subsidiary, Max Healthcare Institute, for Rs 516.5 crore to a South African company.
Max India opened on a bullish note on the bourses and then gained further momentum to touch an early of Rs 190.05 on the Bombay Stock Exchange, a jump of over 6.82 per cent vis-a-vis its previous closing price.
On the National Stock Exchange the scrip rose to a high of Rs 194, up 9.01 per cent from its last close.
However, some of the initial gains were later pared and Max India was trading 1.18 per cent higher at Rs 180 on the BSE and up 1.10 per cent at Rs 179.90 on the NSE at 1052 hours.
Over 1.82 lakh shares of the company changed hands on the BSE and more than 5.37 lakh shares were traded on the NSE by 1052 hours.
Max India, which is promoted by Analjit Singh family, has entered into a non-binding term sheet with South Africa-based Life Healthcare Group "to issue and allot" shares constituting a 26 per cent stake in Max Healthcare Institute for Rs 516.5 crore.
Life Healthcare Group is a leading healthcare service provider in South Africa, with market capitalization of over $2 billion. Its network includes 63 hospitals with over 8,000 beds and a 27 per cent market share in healthcare industry in South Africa.