Max-Ventures and Industries (MaxVIL) has surged 18% to Rs 79.15 on the BSE in early morning trade after New York Life Insurance Company, the largest mutual life insurance company in the United States picked up 22.51% stake for Rs 121 crore in the company.
“The company has it made a preferential offer to issue common stock to a subsidiary of New York Life Insurance Company, subject to shareholder approval,” MaxVIL said in a press release.
The board also proposed an allotment of share warrants at Rs 78 per warrant to the promoter group equivalent to 4.76% of the post-issue share capital of the MaxVIL on a fully diluted basis assuming full conversion of the warrants.
The company said these share warrants will be convertible into equivalent equity shares within 18 months, taking the shareholding of the Promoter Group in MaxVIL to around 38.02% on fully diluted basis.
The funds coming in will be used to invest in MaxVIL’s focus areas including manufacturing, real estate development and education, and will provide intellectual and financial capital to promising and proven early-stage organizations, said Sahil Vachani, Managing Director, and CEO of MaxVIL.
New York Life is the largest mutual life insurance company in the United States and one of the largest life insurers in the world, with more than $500 billion under management.
MaxVIL is the newest entity in the Max Group of companies that came into existence after the erstwhile Max India Group was demerged into Max Financial Services, Max India and Max-Ventures and Industries (MaxVIL).
At 09:30 am; the stock was up 15% at Rs 76.80 on BSE. The trading volumes on the counter jumped by more than five-fold with a combined 4.88 million shares changed hands on the BSE and NSE so far.
