Max India scales to a new high

Max India has offered investors a good opportunity to make capital gain after a foreign PE fund acquired a substantial stake at a premium. The acquisition through conversion of debentures triggered momentum in the stock which helped it scale a new high on Tuesday.

GS Capital Partners, the private equity arm of Goldman Sachs, picked up over 9% through conversion of compulsorily convertible debentures at 216.75 apiece, at about 30% premium, on June 10. What surprised the market is that the fund opted for conversion at premium even after the company reported higher losses of 42 crore for FY11. The stock gained before closing 6.5% up at 188.3 on the BSE on Tuesday.

(Contributed by Vijay Gurav)