Axis Bank Ltd on Tuesday announced that it has become co-promoters of Max Life Insurance Company Limited, after completion of the acquisition of 12.99% stake collectively by the Axis Entities in the company.
“The Board of Max Life recorded the closure of the deal today. The transaction was completed after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval in February this year,” the private lender said in a regulatory filing.
Max Life’s holding company Max Financial Services Limited and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February 2020.
Axis Bank had announced its intent to purchase a 30% stake in Max Life Insurance for a sum of around Rs. 1530 crore in April last year
The lender said that Axis Bank and its two subsidiaries—Axis Capital Limited and Axis Securities Limited – will collectively own 12.99% stake in Max Life after the consummation of the deal.
“The Axis Entities have a right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, subject to regulatory approvals,” the bank said in a statement.
“With the conclusion of this transaction, Max Life’s Board will be strengthened further, with the co-option of three nominee directors of Axis Entities on its Board,” it said.
Surjitt Sahani
