Max Financial Services has moved higher by 12 % to Rs 531, also its 52-week high on the BSE,after the company and Max Life on Friday enetered into an agreement for a merger with HDFC Life.
In past two trading session , the stock raillied 24 % from Rsw 429 on June 16, as compared to 0.61% rise in the S&P BSE Sensex.
Under the arrangement , Max Life will first merge with Max Financial Services which in turn will merge with HDFC Life.
In a statement to the stock exchanges, Max Financial Services and HDFC said their respective boards had approved entering a confidentiality, exclusivity and standstill agreement to evaluate a potential combination through a merger of Max Life Insurance Company and Max Financial Services into HDFC Standard Life Insurance Company by way of a scheme of arrangement.
The agreement provides for a mutually agreed exclusivity period for due diligence and discussions between the parties in relation to the proposed transaction, it added.
At 10:32 AM, the stock was up 11.5% at Rs 527 on the BSE as compared to 0.29% rise in the benchmark index. The trading volumes on counter jumped an over three-fold with a combined 4.78 million shares changed hands on the BSE and NSE so far.