Promoter stake sale at Max Financial Services may have hit a roadblock due to the mismatch in deal terms between the seller and interested buyers, three independent sources with direct knowledge of the matter told Moneycontrol.
Sources suggest that Analjit Singh led promoter group wants to sell around 7 percent of the 11.45 percent stake held in Max Financial Services to monetise it later and gain upside.
“Private equity investors interested in the deal want a clean deal with the exit of the promoter and change in control” sources said, adding that interested private equity players include Bain Capital, CVC Capital, TA Associates.
Max Financial Services Promoter said, "As stated earlier, we remain engaged and invested in the company and are looking forward to its growth."
None of the PE players engaged in the deal commented on our queries.
Mitsubishi Sumitomo Insurance owns 21.86 percent in Max Financial Services. Max Financial Services is the parent company of Max Life Insurance in which Axis Bank is a co-promoter.
A source added that, “Axis Bank's blessings will be critical for the promoter stake sale deal since Max Life is the key asset for Max Financial Services.”
Moneycontrol was the first to report about the promoter stake sale intent on November 30, 2022.
