homebusiness Newscompanies NewsMax Financial promoter stake sale plans hit a roadblock on deal contour mismatch: Exclusive
Max Financial promoter stake sale plans hit a roadblock on deal contour mismatch: Exclusive
Promoters of the company said that they remain engaged and invested in the company and are looking forward to its growth.
Max Financial's proposed promoter stake sale has hit a roadblock over a mismatch in expectations, people privy to the matter told CNBC-TV18.
Sources said that the Analjit Singh-led promoter group intends to sell only 7 percent out of the 11.45 percent stake. On the other hand, private equity players who are interested in the transaction want to acquire the entire promoter stake as part of the deal.
The promoters, led by Analjit Singh want to retain some stake for potential upside in the future, according to the sources.
Bain Capital, CVC, TA Associates are among the private equity players who are interested in the deal.
Promoters of the company said that they remain engaged and invested in the company and are looking forward to its growth.
CNBC-TV18 reached out to the interested private equity parties who did not offer any comment.
Mitsubishi Sumitomo holds a 21.86 percent stake in Max Financial Services, who is the parent company of Max Life Insurance. Private lender Axis Bank is the co-promoter of Max Life Insurance.
Post this, the promoter had pared 1.7 percent stake in the company worth nearly Rs 400 crore via block deal on December 22.
Shares of Max Financial Services are trading 0.3 percent lower at Rs 653.05.
(Edited by : Hormaz Fatakia)
First Published: Mar 15, 2023 12:36 PM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Prajwal Revanna's father in custody for alleged kidnapping and sexual abuse
May 4, 2024 7:53 PM
Delhi, Indore, Surat and Banswara — why these are the most challenging domains for Congress internally
May 4, 2024 1:53 PM
Congress nominee from Puri Lok Sabha seat withdraws, citing no funds from party
May 4, 2024 12:00 PM
Lok Sabha Polls '24 | Rahul Gandhi in Rae Bareli, why not Amethi
May 4, 2024 9:43 AM