Max Financial Services is currently the top gainer on the BSE. The stock, which had closed yesterday at Rs.516.45, opened higher today at Rs.541.10 and went on to hit a new 52-week high at Rs.597.60. Volumes are up over 6 times.
The company, which is the holding company of Max Life Insurance is up on unconfirmed news report that Axis Bank is acquiring a 20% stake in the insurance arm through fresh issue of equity.
This differs from the earlier plan of Max of making a complete exit from insurance sector.
Axis Bank as such contributes around 55% of Max Life’s revenue and this news, once confirmed, will be good for Max Financial as it will once and for all end all uncertainty and with Axis Bank as a partner, it will be more sound and solid.