Axis Bank to acquire additional stake in Max Life Insurance for ₹336 crore

The private lender informed the stock exchanges in a filing that its board of directors at the meeting held on June 19 approved increasing the stake in the insurance firm up to 19.99%.

The Acquisitions, Divestments and Merger Committee of the Board approved to increase the bank’s shareholding in Max Life Insurance Company Ltd from the current 19.02%, for a consideration of ₹336 crore, Axis Bank informed the bourses.

The private lender said that the bank and its subsidiaries, Axis Securities Ltd and Axis Capital Ltd, will be acquiring an additional equity stake in Max Life Insurance Company, which is a subsidiary of Max Financial Services Ltd.

The equity stake acquisition will be conducted for a cash consideration of not more than ₹336 crore as per the discounted cash flow (DCF) methodology.

The private sector bank has set an indicative time target of two to three months’ period for the completion of the said stake acquisition, subject to the receival of all regulatory approvals.

Max Life Insurance Company has been in the line of life insurance business since its onset on July 11, 2000, with a gross written premium of ₹29,529 crore in the financial year 2023-2024.

In August 2023, Axis Bank was granted the regulatory approval for putting in a sum of ₹1,612 crore in Max Life Insurance in order to increase its stake in the life insurer to 19.02%.

Shares of Axis Bank closed 3.11% higher at ₹1,229 apiece on the NSE.