Axis Bank to acquire remaining 7% stake in Max Financial

Axis Bank will buy the remaining 7 percent stake in Max Financial through a revised agreement, the private lender said in a regulatory filing on January 10.

Axis Entities and Max Financial agreed that the valuation for the right to acquire the remaining 7 percent stake of Max Life would be through fair market value using discounted cash flow and not through Rule 11UA of the Income Tax rules,1962.

The lender said the revised agreement was done consequent to the guidance received by Max Life from the Insurance Regulatory and Development Authority (IRDAI).

Previously, Axis Entities acquired a 12.99 percent stake in Max Life at Rs 35 per share with the right to acquire an additional 7 percent stake in the company.