Axis Bank and its various subsidiaries’ boards have approved raising their stake in Max Life Insurance to 19.99 per cent at Rs 336 crore in a cash deal, the private lender said in a stock exchange filing on Wednesday.
Axis Bank, its subsidiaries Axis Securities and Axis Capital, together previously held 19.02 per cent stake in the life insurance company.
“The Acquisitions, Divestments and Merger Committee of the Board of Directors of the Bank at its meeting held on June 19, 2024, has approved a proposal for acquisition of additional equity shares of Max Life by the Bank for an amount of upto Rs. 336 crore, thereby increasing the aggregate shareholding of the Axis Entities from T19.02 per cent to 19.99 per cent,” the statement read.
The company said this stake buy “would strengthen the bank’s position in the life insurance business.”
Axis Bank in August 2023 received regulatory approval to infuse Rs 1,612 crore in Max Life Insurance by subscribing to shares on a preferential basis, raising Axis Entities’ stake to 19.02 per cent in Max Life Insurance.
In 2021, Axis Bank announced the deal for the acquisition of a stake in Max Life Insurance Co, a subsidiary of Max Financial Services.
