Axis Bank is buying additional stake in Max Life Insurance - a subsidiary of Max Financial - at a cost of Rs 336 crore, the lender said in a exchange filing on June 19.
With the stake purchase, the aggregate shareholding of Axis entities in Max Life has increased from 19.02% to 19.99%.
Shares of Axis Bank were trading higher at 1:30pm, while the stock of Max Financial has been subdued after slipping from early highs.
"In continuation of the existing investment, this acquisition would strengthen the Bank’s position in Life Insurance business", Axis Bank said in the statement issued to stock exchange.
The Axis Bank board had in August 2023 given its approval to a Rs 1,612-crore infusion into Max Life Insurance Company Limited, a material subsidiary of Max Financial Services Limited.
Axis Bank had got into a Share Subscription Agreement with Max Life for the proposed acquisition through a Preferential Issue at a fair market value of Rs. 113.06 per share.
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