Max Healthcare share price closed at upper circuit of 5% after the stock made its market debut today. Share price of Max Healthcare opened at Rs 107 and hit an intra day high of Rs 112.35, up 5% in early trade. The share was stuck in the upper circuit of 5% for the remaining session with high buying interest seen in the scrip.
Total 2.50 lakh shares changed hands amounting to turnover of Rs 2.80 crore on BSE.
Market cap of the firm rose to Rs 10,162 crore.
The listing of the healthcare provider comes after a merger of the healthcare assets of Max India into Max Healthcare and demerger of the residual businesses of Max India into Advaita Allied Health Services, a wholly owned subsidiary of Max India.
The stock of Max Healthcare Institute was listed in the list of T Group of Securities on BSE. The scrip will be in Trade-for-Trade segment for 10 trading days.
In trade-to-trade segment, stocks can be traded only for compulsory delivery basis. Hence they cannot be traded intraday. Each share purchased/sold needs to be taken delivery by paying full amount.
"Listing of Max Healthcare Institute Ltd - Max Healthcare and Radiant merged their healthcare business to create the second largest healthcare chain in India by revenue after Apollo Hospitals. Max Healthcare will be led by Abhay Soi and backed by KKR & Co., who are well known as a global investment company," said Yash Gupta, Equity Research Associate, Angel Broking Ltd.
Revenue for the merged entity for FY 2020 is 4,026 crore and it will be the second-largest private hospital chain after Apollo Hospitals. Currently, Max Healthcare has 17 Facilities with total bed capacity of 3,400 with major facilities in the NCR region.
"Abhay Soi and KKR will be the promoters of Max Healthcare with controlling stakes of 52% and 23.3% respectively. We expect Max Healthcare to do well under the leadership of Abhay Soi and KKR," Gupta added.