Mumbai: Max Financial Services Ltd on Tuesday witnessed a series of block deals in which around 15.1 million shares or 5.6% stake of the company changed hands, Bloomberg reported. Details of buyers and sellers were not available.

The stock fell as much as 4.5%, its steepest fall since 28 January 2016, to touch a low of Rs566.60 a share. The scrip closed down 4.15% at Rs568.65 while the benchmark index—Sensex—rose by 0.35%, or 100 points.

Shares of Max Financial opened sharply lower after a Bloomberg report said that a unit of Goldman Sachs, GS Mace Holdings Ltd, will sell 10 million shares in the company, with an upside option of up to 5 million shares via a secondary block or bulk trade.

The floor price was set at Rs550 a share, a 7.5% discount to Monday’s closing price. The deal size will be at $82 million with an upsize option of $41.1 million, the Bloomberg report added.

Goldman’s private equity arm invested Rs540 crore in Max in 2009 through a compulsory convertible debenture issue, and received shares of Max Financial Services at Rs216.75 each.

As of December quarter, Goldman held 15.46% of it through two different entities: GS Mace Holdings (6.43%) and Xenok Ltd (9.01%).

GC Mace compiles business data about US-based companies, while Xenok is a wholly-owned subsidiary of Goldman Sachs Capital Partners VI Fund.

Max India demerged into three separate companies in January 2016—Max Ventures, Max Financial Services and Max India Ltd.

Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.

Share Via