Shares of Max Financial Services will be in focus on March 27 after a block deal worth Rs 569 crore took place on the stock exchanges. Around 51.16 lakh shares, representing a 1.5 percent stake in the company, changed hands in the block deal window.
The shares were exchanged at an average price of Rs 1,112 per share, which is nearly the same as the previous closing price of Rs 1,115 per share. While the identities of the buyers and sellers remain unconfirmed, reports suggest that Max Ventures Investment Holding, part of the promoter group, was likely the seller.
The price was reportedly fixed at Rs 1,117.6 a share before the block deal, and the estimated size of the deal would be Rs 611.6 crore.
This comes after UBS AG offloaded 11 lakh shares in Max Financial Services on March 25 at an average cost of Rs 1,157.35 per share. The buyer was Integrated Core Strategies (Asia).
In December 2024, Jefferies, a global broker, reiterated its “buy” rating on Max Financial Services and raised its target price. The reason cited by the firm was the beneficial impact of the deal with Axis Bank on the business, with the renaming of Max Life Insurance as Axis Max Life Insurance. The new name will enhance brand recall in the smaller towns where the Axis Bank has a strong presence.
But Jefferies added regulatory developments in bancassurance will need to be carefully monitored since Axis Bank contributes 45 percent to the yearly premium equivalent (APE) in Max Life. The stock is quoted on an attractive multiple of 8 times price-to-value of new business (P/VNB).
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Source: Moneycontrol.
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