Big Funds Like Morgan Stanley and DSP MF Acquire Max Financial Services Shares

A group of 8 entities collectively purchased a 1.6% stake in Max Financial Services. The transaction occurred on Thursday. The total value of the purchase was ₹611.60 crore. The acquisition was made through open market transactions.

Details of the Stake Acquisition in Max Financial Services

The buying entities included prominent names in the financial sector. ICICI Prudential Mutual Fund (MF) was among them. Others included Morgan Stanley, Societe Generale, DSP MF , Kotak Mahindra Life Insurance, and Copthall Mauritius Investment. Oxbow Master Fund was also one of the buyers.

These 8 entities together bought 5.5 million shares. This translated into a 1.59% stake in Max Financial Services. The data regarding the block deal is available on the NSE. The average price at which the shares were bought was ₹1,112 apiece. This brought the total transaction value to ₹611.60 crore.

Max Financial Services’ Promoter Entity Offloads Shares Simultaneously

Concurrently, a promoter entity of Max Financial Services sold an equivalent number of shares. Max Ventures Investment Holdings offloaded its stake. The sale was executed at the same price as the purchase. The transactions took place on the National Stock Exchange (NSE).

Impact on Shareholding of Max Financial Services

Following these transactions, the shareholding of Max Ventures Investment Holdings in Max Financial Services has decreased. It has declined from 3.22% to 1.63%. Additionally, the combined holding of entities promoted by Analjit Singh also saw a reduction. This combined holding came down to 1.75% from 3.34%.

Max Financial Services Share Price Movement

The Max Financial Services share price experienced a downward movement on Thursday. The stock price declined by 0.057% and closed at ₹1,146.65 apiece on the NSE.

Conclusion

A consortium of 8 financial entities, including ICICI Prudential MF and Morgan Stanley, acquired a 1.6% stake in Max Financial Services for ₹611.60 crore. This purchase coincided with the promoter entity, Max Ventures Investment Holdings, selling an equivalent stake.

The market reacted positively to these transactions. However, company’s stock price declined by 0.057% on closing on Friday.

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