Max Financial Services: Shares fell 2% after block deal, stake worth ₹1637 crore sold.
Max Financial Services Shares: Max Financial Services shares tumbled today after a big block deal on 5 September. Shares worth about Rs 1,637 crore of the company were sold in this block deal. A total of 1.5 crore shares were sold, which is equivalent to about 4.3 percent stake in the company. Moneycontrol could not immediately identify all the parties involved in this deal
Max Financial Services Shares:
Max Financial Services shares fell today on September 5 after a big block deal. Shares worth about Rs 1,637 crore of the company were sold in this block deal. A total of 1.5 crore shares were sold, which is equivalent to about 4.3 percent stake in the company. Moneycontrol could not immediately identify all the parties involved in this deal. Shares of Max Financial Services fell by 2 percent to Rs 1,105 in early trade after this big deal. Due to this big deal, the trading volume of the stock has also increased. By 9.30 am, 9 crore shares of the company were traded on the exchange, which is much higher than its one-month daily average of 11 lakh shares.
Max Financial’s margins declined 4.70 per cent year-on-year in the June quarter. However, its annual premium equivalent (APE) jumped 31 per cent, which is also higher than its competitors like SBI Life (20 per cent) and HDFC Life (23 per cent). New retail policies saw a growth of 27 per cent during the June quarter. While renewal premium grew 10 per cent to Rs 3,323 crore. This took the company’s total gross written premium to Rs 5,399 crore.
However, due to the sharp decline in margins, brokerage firms like Nomura and Motilal Oswal have adopted a ‘neutral’ stance on this stock. They said that the company’s management is confident of compensating for the margin pressure with a boom in premium growth, but they find this possibility far-fetched.