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MFSL announced on 24 February 2021 that the Insurance Regulatory and Development Authority of India (IRDAI) has given its formal approval for the acquisition of up to 12% stake in Max Life Insurance Company (Max Life) by Axis Bank and its subsidiaries, Axis Capital & Axis Securities (together Axis Entities). The IRDAI approval was an integral step in this long-awaited joint venture transaction which was first announced in April 2020.
As per the proposed transaction, Axis Entities have the right to acquire up to 19% stake in Max Life, of which, Axis Bank proposes to acquire up to 9%, and Axis Capital and Axis Securities together propose to acquire up to 3% of the share capital of Max Life in the first leg of the transaction. In addition, Axis Entities have the right to acquire an additional stake of up to 7% in Max Life, in one or more tranches, which they intend to acquire over the course of the next few years.
Max Life is the fourth largest private life insurer in India while Axis Bank is the third largest private bank. The two companies have shared a successful business relationship for over a decade, providing long-term saving and protection products to nearly 20 lakh customers.
Shares of Axis Bank were trading 3.59% higher at Rs 775.65 on BSE.
MFSL is part of the leading business conglomerate — the Max Group. Focused on life insurance, MSFL owns and actively manages a 93.1% stake in Max Life Insurance, India's largest non-bank, private life insurance company. In April 2020, MFSL announced its intent to bring Axis Bank as a JV partner for its life insurance business Max Life.
MFSL's consolidated net profit jumped 53.9% to Rs 227.13 crore on a 67.5% rise in total income at Rs 8,990.28 crore in Q3 FY21 over Q3 FY20.
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