Max Financial Services Limited (MFSL) on November 28 announced that it has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to purchase the balance 5.17 percent stake held by Mitsui Sumitomo Company Limited (MSI) in Max Life Insurance Company Limited (Max Life). The transaction is expected to be concluded in the next fortnight.
"This transaction entails purchase of 9.91 Cr shares of Max Life at Rs. 85/- per share by MFSL, the parent company of Max Life, as per the Put/Call option approved by the MFSL Board on 3 March 2020 and subsequently by its shareholders on 27 May 2020," Max Financial Services said in a stock exchange filing on November 28.
Following the disclosure, share of Max Financial jumped 5.4 percent to Rs 700.95 apiece in early deals on the BSE.
Analjit Singh, Chairman, Max Group, said “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.”