Max Financial Services on Monday said insurance regulator Irdai has approved the purchase of Mitsui Sumitomo Company's residual stake in Max Life Insurance.
The transaction is expected to be concluded in the next fortnight, Max Financial Services Ltd (MFSL) said in a regulatory filing.
"MFSL announced that it has received approval from the Insurance Regulatory and Development Authority of India (Irdai) to purchase the balance 5.17 per cent stake held by Mitsui Sumitomo Company Ltd (MSI) in Max Life," it said.
The transaction entails the purchase of 9.91 crore shares of Max Life at Rs 85 per share by MFSL, the parent company of Max Life.
Post completion of MSI balance stake buyout of 5.17 per cent, MFSL's shareholding in Max Life will increase to 87 per cent.
"The transaction will make the holding company structure simpler and help consolidate our shareholding in Max Life, which will benefit all our shareholders by attracting more investor interest," Max Group Chairman Analjit Singh said.
Earlier, MFSL held a 72.52 per cent stake in Max Life and MSI had a 25.48 per cent stake.
In December 2020, MFSL swapped 20.57 per cent of the paid-up equity share capital in Max Life held by MSI to MFSL in exchange for 21.87 per cent of the issued and paid-up share capital of MFSL.
In March 2021, MSI acquired a 0.26 per cent stake from Axis Bank, as a result, MSI's stake in Max Life increased to 5.17 per cent. Subsequently, MFSL was awaiting this approval from Irdai for the transfer of the balance stake of 5.17 per cent held by MSI.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
