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Max Financial Services announced 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.
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