Max Financial shares surge over 2% after Rs 399 crore block deal

Shares of Max Financial Services rose 2.5% in early trade to their day’s high of Rs 1,145.80 on the BSE on Thursday after a large block deal involving 35.8 lakh shares worth Rs 399 crore took place at Rs 1,112 per share.

Max Ventures Investment Holding is likely to offload up to a 1.59% stake in Max Financial Services through block deals, according to a CNBC-TV18 report. The offer price is reportedly set at Rs 1,117.6 per share, representing a 0.5% discount to the company’s current market price. The total size of the block deal is estimated at Rs 611.6 crore, the report added.

This comes months after a significant transaction on September 5, 2024, when 1.5 crore shares, representing 4.3% of the company’s equity, changed hands in a Rs 1,637 crore deal.

Max Financial Services, a leading player in the life insurance sector through its joint venture with Axis Bank, reported a 62.3% year-on-year drop in net profit to Rs 56 crore for the quarter ended December 31, 2024. Meanwhile, net interest income surged 61.2% to Rs 122.8 crore.

Shares of Max Financial Services closed 1.8% lower at Rs 1,118.00 on the BSE on Wednesday. The stock has gained 13.2% over the past year but is down 6.5% in the last six months. It has risen 10% in the past month and 1.4% in the past week.

Technical indicators suggest the stock is trading above six of its eight key simple moving averages but remains below its 5-day and 150-day SMAs. The 14-day Relative Strength Index (RSI) stands at 57.9, indicating neutral momentum.

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