Axis Bank, an institution based in India intends to increase its ownership, in Max Life insurance from 9.99% to 16.2% by making an investment of 16.12 billion rupees. This strategic decision aligns with Max Life’s aspirations for expansion. Strengthens Axis Banks’ presence, in the life insurance industry pending regulatory clearances.
India’s Axis Bank announced its intention to increase its ownership in Max Life, an insurance company, from 9.99% to 16.2%. This enhancement will be facilitated by an investment of 16.12 billion rupees ($194.6 million) through the issuance of preferential shares. Axis Bank and its associated entities had previously acquired a 12.99% stake in Max Life in 2021, and with this fresh capital injection, their collective ownership will rise to 19.02%.
Max Financial Services, the holding entity of Max Life, will retain approximately 80.98% control over the insurer. The proposed investment by Axis Bank is poised to provide vital support for Max Life’s future growth aspirations, as stated by Max Financial Services.
The completion of this investment venture is contingent upon regulatory endorsements, a move that is anticipated to fortify Axis Bank’s standing in the life insurance sector. In conjunction, Axis Entities will gain the prerogative to nominate the chairman of Max Life.
Prior to the 2021 transaction, Axis Bank had a minority stake in Max Life. Their initial intention was to acquire close to 30% ownership in the insurer, but this objective was modified due to regulatory impediments. During a recent post-earnings press briefing, CEO Amitabh Chaudhry affirmed Axis Bank’s commitment to attaining up to 20% ownership in Max Life, demonstrating the bank’s resolute adherence to its strategic course.
