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Max Financial Services (MFSL) announced that Insurance Regulatory and Development Authority of India (IRDAI) has approved the proposed transfer of 39,47,75,831 equity shares constituting 20.57% of the paid-up equity share capital of Max Life Insurance Company (Max Life) held by Mitsui Sumitomo Insurance Company (MSI) to MFSL in exchange for issuance of 7,54,58,088 Equity shares of MFSL, constituting 21.87% of issued and paid-up share capital of MFSL (Share Swap Transaction).
MFSL will now proceed for the implementation of the Share Swap Transaction, which will entail swapping by MSI of its 20.57% stake in Max Life with a 21.87% stake in MFSL by way of issue and allotment of 7,54,58,088 equity shares of Rs. 2/- each at a price of Rs. 565.11 per equity share on a preferential allotment basis.
Upon consummation, this will effectively result in MFSL's stake in Max Life increasing to 93.10%. Presently, MFSL holds a 72.5% stake in Max Life and MSI owns 25.5% stake.
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