If a stock gains after announcement of a merger, when the merger is called off it should tank, logically speaking, but by how much? In the case of Max Financial Services, from the time rumours about its potential merger with HDFC Standard Life surfaced in June 2016 to a couple of weeks after the official announcement on August 8, 2016, the stock gained a whopping 62%. The stock continued to scale new highs all the way till May 2017 when rumours about the deal not cutting ice with the regulator emerged. Over the next few months till July this year when the official announcement came through, the stock lost only a third of its gain triggered by the merger news. Not withstanding a failed deal, the stock is on a roll.
Executive president Rahul Khosla maximises the rise in Max Financial by selling stock worth ₹72 crore
Summer wine and salad
Kishore Singh - January 19, 2015
A double topping for growth
Meghna Maiti - January 15, 2015
The million-dollar question: Is investing a game of luck or skill?
Shankar Sharma - May 04, 2021
Scriptures for success
Kripa Mahalingam - January 27, 2015
Where's the party tonight?
Aditi Saxena - January 27, 2015