Axis Bank hikes stake in Max Life for Rs 336 crore

Axis Bank hikes stake in Max Life for Rs 336 crore

Axis Bank on Wednesday increased its holding in Max Life to 19.99 per cent for Rs 336 crore.

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 up to Rs 336 crore, Axis Bank said in a regulatory filing.

With this, the aggregate shareholding of Axis Entities increased from 19.02 per cent to 19.99 per cent, it said.

The transaction is subject to receipt of all requisite regulatory approvals, as may be applicable, it said.

Axis Bank and its two subsidiaries – Axis Capital Ltd and Axis Securities Ltd – were allowed to collectively own about 20 per cent in Max Life Insurance by the Insurance Regulatory and Development Authority of India (IRDAI).

The stake was acquired as part of a deal closed in 2021 between Axis Bank and Max Life Insurance.

Last year, Axis Bank entered into a revised agreement with Max Financial Services to acquire an additional 7 per cent stake in Max Life Insurance at fair market value using discounted cash flow method.

The revision in agreement follows the guidance issued by the IRDAI in October 2022.