Online BusinessMax India zooms on fund raising plans
Max India ended at Rs 204, higher by Rs 13 or 6.9%, on the BSE.
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The stock had opened at Rs 194, and touched a high of Rs 218 and a low of Rs 194 during the day.
The counter saw trades of 5.65 lakh shares as against the two-week average of 0.62 lakh shares.
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Max India has soared 8% to Rs 215, on reports that the company is planning to raise $115 million (approx Rs 500 crore) through preferential issue to Xenok, a wholly owned subsidiary of Goldman Sachs Capital Partners.
The board has already taken shareholders approval in its extra ordinary general meeting held in last week, to sell around 9.4% stake in the company by allotting 12% fully and compulsorily convertible debenture (FCDs) of face value of Rs 867 each being compulsorily convertible into equity shares on or before 15 months from the date of allotment. Each FCD shall be converted into four equity shares of Rs 2 each at a premium of Rs 214.75 per equity share.
The board has also decided to issue two million warrants (representing about 3% stake) on preferential basis to one of its promoter group companies - Dynavest India. The warrants of the value of Rs 867 per warrant (with each warrant entitling the holder thereof to subscribe to four equity shares of Rs 2 each in the capital of the company at a premium of Rs 214.75 per equity share) aggregating to an issue price of Rs 173 crore.