Max Ventures soared 7% as Promoter Hiked Holding

Billionaire industrialist and Promoter Analjit Singh has increased holding in Max Ventures and Industries Ltd (MVIL) through a secondary market bulk deal transaction after an open offer to hike stake in the firm failed early this year.

Goldman Sachs, the Global investment banking and investment firm, on Tuesday sold 3.33% stake in Max Ventures to Siva Enterprises Pvt. Ltd, a promoter group entity. Xenok Ltd, the Goldman Sachs’ arm, sold 17.78 lakh shares through a block deal on the NSE at a weighted price of Rs 50.5 per piece, valuing the deal at Rs 8.98 crore, the data of stock exchange shows.

On the deal, Max Ventures share price went up by 7.22% to trade at the intraday high of Rs. 53.40

Promoters hold 40.4% in MVIL as of 30 September and had offered to buy 34.27% stake more through an open offer. But they managed to buy only insignificant number of shares in the process that closed on 13 October. With this transaction, they have used the edging acquisition route to raise their holding. However, it would be a far cry from the intention to own a majority stake in the firm. Promoters of listed firms can hold a maximum of 75% in their companies.

Early this month, the company’s board permitted borrowing up to Rs 70 crore from Analjit Singh, promoter and chairman of the firm, without any interest for repayment of existing loan, backing to subsidiaries and other general corporate purposes.

At 10:29 AM, Max Ventures share price was trading at Rs. 53, up by 6.43%.

Goldman Sachs that had formerly invested in the former group flagship Max India Ltd. had been selling its stake since the firm listed in June. Through two entities it held 6.36% stake as on 30 September, which has almost halved with this deal. MVIL, of late set up a wholly-owned subsidiary Max Estates Ltd, which will take on real estate development projects, and will also explore investments in other sectors.

Max Ventures is the top 500 recommendation by Dynamic Levels for the quarter. For the details on the stock, visit Max Ventures share price history page of Dynamic Levels website.