BackMax Financial shares fall 4.2% after a series of blocks deals
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
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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.
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