MaxVIL soars 15 per cent as board approves allotment of equity stake to subsidiary of New York Life Insurance

The board of Max Ventures and Industries (MaxVIL) made a preferential offer, subject to shareholders' approval, to issue common stock to a subsidiary of New York Life Insurance Company. New York Life is the largest mutual life insurance company in the United States and one of the largest life insurers in the world, with more than $500 billion under its management.

Subject to MaxVIL shareholders' approval, a subsidiary of New York Life Insurance Company will acquire a 22.51 per cent equity stake in MaxVIL at an offer price of Rs 78 per share aggregating to Rs 121 crore on a diluted basis and will be entitled to one nominee director to the board of MaxVIL.
The offer price of Rs 78 was at a premium of 16.33 per cent to the yesterday’s (9 Jan., 2017) closing price of Rs 67.05.

The Board of MaxVIL also proposed allotment of share warrants to the promoter group equivalent to 4.76 per cent of the post-issue share capital of the company on a fully diluted basis, assuming full conversion of the warrants. These share warrants will be issued at Rs 78 per warrant aggregating to Rs 26.9 crore and will be convertible into equivalent equity shares within 18 months, taking the shareholding of the promoter group in MaxVIL to around 38.02 per cent on fully diluted basis.

MaxVIL is the newest entity in the Max Group of companies that came into existence after the erstwhile Max India Group was demerged into Max Financial Services Ltd, Max India Ltd and Max Ventures and Industries Ltd (MaxVIL).

MaxVIL has four distinct business verticals, viz. Max Speciality Films (manufacturing), Max Estates (real estate), Max Learning (education) and Max I. (i.e. intellectual and financial support).

Reacting to this development, the stock jumped ~15 per cent on toady’s trade to touch the day's high of Rs 79.15.