Max Financial Services promoter Analjit Singh is looking to monetise his stake in the firm, three independent sources with direct knowledge of the deal told Moneycontrol. Singh is said to have started a stake sale process and expects a valuation of over Rs 27,000 crore.
One of the sources pointed that, “This stake sale will trigger an open offer if a significant stake is sold as it will lead to change in control.”
In an e-mail response to Moneycontrol, the promoter group of Max Financial Services denied stake sale deal and said, “This is untrue. Mr. Analjit Singh remains engaged and invested in the company and is looking forward to its growth."
A statement was also released by the company on behalf of the chairman on November 30 stating that the reports are untrue.
"Apart from the assertion being completely baseless, what is concerning is that the said media outfits have decided to downplay our unequivocal rebuttal of the assertion and amplify the opinion of unverified sources," the statement said.
"Mr. Analjit Singh remains engaged and invested in the company and is looking forward to its robust growth trajectory," it added.
The investment bank hired for the stake sale process is in talks with top private equity players and strategic companies, sources said.
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 with 12.99 percent stake.
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.”
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