Axis Bank has decided to raise its shareholding in Max Life Insurance for an amount of up to ₹336 crore. This transaction would lead to the aggregate shareholding of the Axis Entities going up from 19.02 per cent to 19.66 per cent.
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 ₹ 336 crore, thereby increasing the aggregate shareholding of the Axis Entities from 19.02 per cent to 19.99 per cent”, Axis Bank said in a regulatory filing with the stock exchanges.
The additional stake buy in Max Life would be through cash consideration . In 2023-24, Max Life Insurance recorded a Gross Written Premium of ₹29,529 crore.
Axis Bank’s Board had in August last year approved the proposal to infuse ₹1,612 crore in Max Life, resulting in the bank’s direct stake in Max Life increasing to 16.22 per cent and the collective stake of Axis Entities rising to 19.02 per cent. Post this additional 6 per cent acquisition by Axis Bank, the stake of MFSL in Max Life had come down from 87 per cent to 81 per cent.
In April 2021, Axis Bank and its subsidiaries, Axis Securities and Axis Capital, collectively acquired a 12 per cent stake in Max Life through a secondary transfer from Max Financial.