Max Financial drops 3% as Goldman Sachs looks to divest stake

NEW DELHI: Shares of Max Financial Services slumped over 3 per cent in Monday’s trade after reports that a private equity fund managed by Goldman Sachs was looking to sell 15 per cent of its stake in the company for Rs 2,400 crore via secondary market trades.

The stock tumbled 3.26 per cent to hit a low of Rs 570.60 on BSE.

Goldman's private equity arm invested Rs 540 crore in Max in 2009 through a compulsory convertible debenture issue, and received shares of Max Financial Services at Rs 216.75 each, ET reported.

As on June 30, 2016, Goldman held 15.46 per cent of it through two different entities: GS Mace Holdings and Xenok, the report said.

Meanwhile, ICICI Prudential Life Insurance, the biggest initial public offering ( IPO) in nearly six years, kick-started on Monday, with investors bidding for 4.08 lakh shares within the first 10 minutes of the bidding process. Max Financial Services board has recently announced merger with HDFC Standard Life. The merged entity would be a peer to ICICI Prudential Life.