New Delhi, Jan. 15: Listed entity Max India, founded by Analjit Singh, will be split into three - Max Financial Services for life insurance; Max Ventures & Industries for speciality packaging films and new enterprises; and the demerged Max India for health.
Existing Max India shareholders will now own shares in three listed entities.
Singh will now be the founder and chairman emeritus of Max Group, while Rahul Khosla, managing director of erstwhile Max India, has been elevated as the group president.
HSBC India's former chairman Naina Lal Kidwai will join Max Group as the chairperson of Max Financial Services.
Singh has stepped down as the chairman and from the board of the demerged Max Financial Services today. He will also step down from the demerged Max India and Max Life Insurance at their respective board meetings. He will remain the chairman of Max Ventures and Industries and Antara Senior Living.
Khosla will be the executive president of Max Financial Services and chairman of Max India, Max Life Insurance and Max Healthcare.
Demerged entities
Max Financial Services Ltd will solely focus on the group's life insurance business - a joint venture with Mitsui Sumitomo Insurance. It will be the first listed company exclusively focused on life insurance.
The second company will manage investments in health and related businesses, including Max Bupa Health Insurance. This venture will now be renamed Max India and will also house Antara Senior Living, which is managed by Singh's daughter.
Max India's existing shareholders will retain one equity share of Rs 2 in Max Financial Services. They will get one equity share (of Rs 2 each) of Max India for every equity share in Max Financial Services; and one equity share of Rs 10 each of Max Ventures and Industries for every five equity shares held in Max Financial Services.
Explaining the transformative potential of the demerger, Singh said, "The group operates diverse businesses, each of which has considerable value and growth potential. The demerger will provide investors a choice to continue to be associated with all these businesses, or in the set of businesses that suit their respective investment objectives."
