Axis Bank has acquired additional equity shares of Max Life Insurance Company, a subsidiary of Max Financial Services, for ₹336 crore, the private lender announced on Wednesday.
The bank's board of directors approved the acquisition of Max Life shares, increasing the total holding of Axis entities in the insurance firm from 19.02% to 19.99 per cent.
“In this regard, we would now like to inform you that the Acquisitions, Divestments and Merger Committee of the Board of Directors of the Bank at its meeting held on June 19, 2024, has approved a proposal for acquisition of additional equity shares of Max Life by the Bank for an amount of upto ₹336 crore, thereby increasing the aggregate shareholding of the Axis Entities from 19.02% to 19.99%,” the company said in the exchange filing.
This strategic move comes after Axis Bank received regulatory approval in August 2023 to inject ₹1,612 crore into Max Life Insurance by subscribing to shares on a preferential basis, initially increasing Axis entities' stake to 19.02%.
In 2021, Axis Bank announced its deal to acquire a stake in Max Life Insurance Co, a subsidiary of Max Financial Services.
The Axis entities include Axis Bank, investment solutions provider Axis Securities, and financial services provider Axis Capital.
Following the announcement, shares of Axis Bank, India's fifth largest by market capitalization, rose by as much as 2.2 per cent, making it one of the top gainers on the Nifty 50 index.
In April, Axis entities had increased their stake in Max Life from 12.99 per cent to 19.02 per cent, initially acquiring a stake in the company in 2020.
Max Financial Services, the holding company of Max Life Insurance, engages in investment business and provides management advisory services.
(With inputs from Reuters)
