Axis Bank to buy 29% stake in Max Life Insurance for Rs 1,600 crore

Axis Bank to buy 29% stake in Max Life Insurance for Rs 1,600 crore

Axis Bank will buy about 30 per cent stake in Max Life Insurance Company from Max Financial Services Limited. Board approval has been granted to purchase a stake in MAX LIFE. According to media reports, the Axis Bank board has approved the part purchase. According to this deal, the acquisition of Max Life will be completed in 6-9 months. Axis Bank will buy 55.6 million shares of MAX LIFE. 

At the same time, Axis Bank will have the right to appoint a director. The deal will be around 1600 crore rupees. Following the deal, Axis Bank will become the strategic partner of Max Life Insurance. Max Life Insurance is currently India's largest non-bank and private life insurance company. The value of the company is around Rs 10,077 crore. Max Financial Services Ltd will sell its 28.6% stake in Max Life Insurance to Axis Bank for Rs 1,600 crore under a share sale transaction. 

Axis Bank and Max both excited by the deal

Announcing the deal, Amitabh Chaudhary, MD and CEO of Axis Bank, said, “We believe in the long-term prospects despite the low space in the life insurance sector in India. We are confident that this deal will lead us to better integrated teams, infrastructure and further deepen our vision and our working relationship. "Whereas Max Group founder and president Analjit Singh said," I believe that as an Axis we have found an extraordinary partner and we believe it will fundamentally strengthen Max Life. We will do better. We will run the organization with an equal partnership. "

According to the report, a special and secret agreement was reached between Max Financial Services and Axis Bank in February 2020 over a partnership in Max Life Insurance. Axis Bank currently holds a 2 per cent stake in Max Life Insurance, which will increase after the deal. However, this would require regulatory approval. Max Financial changed the shareholding of Max Life Insurance in March 2020 itself. Other private and public sector banks also have a stake in Max Life Insurance. These include HDFC Group, ICICI Bank, Kotak Mahindra Bank and State Bank of India.