The company made announcement during market hours today, 27 January 2015.

Meanwhile, the S&P BSE Sensex was up 287.17 points or 0.98% at 29,566.01.

On BSE, so far 12.09 lakh shares were traded in the counter as against average daily volume of 96,584 shares in the past one quarter.

The stock hit a high of Rs 505, also a record high for the stock. The stock hit a low of Rs 463 so far during the day. The stock had hit a 52-week low of Rs 177.60 on 20 February 2014.

The stock had outperformed the market over the past one month till 23 January 2015, gaining 19.62% compared with Sensex's 6.44% rise. The scrip had also outperformed the market in past one quarter, jumping 39.84% as against Sensex's 9.04% rise.

The large-cap insurance services provider has equity capital of Rs 53.30 crore. Face value per share is Rs 2.

Max India said restructuring plan is taken to give investors specific and undiluted access to its diverse lines of businesses, provide sharper focus to each underlying business and unlock shareholder value. The board also approved divestment of is clinical research business.

Upon completion of the demerger, the existing company, Max India, is proposed to be renamed Max Financial Services (MFS) and will focus solely on the group's flagship life insurance activity, through its 72.1% shareholding in Max Life. Upon completion of the demerger, it is proposed to name the second vertical Max India, which will continue to manage investments in the high potential health and allied businesses comprising Max Healthcare, Max Bupa, Antara Senior Living and supported by a corporate management services team. The corporate management services team will manage a shared services centre, which will provide functional support to all 3 verticals.

The third vertical will house the investment activity in the group's manufacturing subsidiary, Max Speciality Films which is an innovation leader in the speciality packaging films business and will be named Max Ventures and Industries (MVIL).

Once the demerger scheme becomes effective after due regulatory approvals, Max India's shareholders will retain one equity share of Rs 2 each in MFSL and will additionally get one equity share of Max India for each equity share of Rs 2 each held in MFSL, and one equity share of MVIL for every 5 equity shares held in MFSL.

Max India has also initiated action for the divestment of its entire 100% stake in the clinical research business. Max Neeman entities in India and United States are proposed to be divested to a Canadian Contract Research Organisation (CRO), JSS Medical Research Inc., for a consideration of $1.5 million, subject to successful completion of due diligence and signing of definitive agreements, expected by mid-February 2015.

Max India has cash reserves of Rs 605 crore as at 31 December 2014. It is proposed to split the cash reserves as on the appointed date of 1 April 2015 between the 3 listed companies such that MFSL will hold Rs 150 crore, MVIL will hold Rs 10 crore and balance likely to be over Rs 400 crore will be held by the newly formed Max India.

The appointed date for the demerger is 1 April 2015, and the demerger is expected to be completed within the next six to nine months.

Max India reported net loss of Rs 11.30 crore in Q2 September 2014 compared with net profit of Rs 1.99 crore in Q2 September 2013. Total income fell 93% to Rs 14.90 crore in Q2 September 2014 over Q2 September 2013.