 "Axis Bank hikes stake in Max Life to 5.99%")
Axis Bank has increased its stake in Max Life Insurance to 5.99 per cent. Max Financial Services today informed the exchanges that it sold 3.99 per cent stake for Rs 76.56 crore to the bank. The deal values the insurance insurance company at around Rs 1,918 crore approximately.
In a stock exchange statement, Axis Bank said that it has bought 4.99 per cent stake from Max Financial Services and Mitsui Sumitomo for Rs 95.75 crore. Of this, it bought one per cent stake from the latter at Rs 19.19 crore.
Prior to this, Axis Bank held one per cent stake in the private life insurance company. While 3.99 per cent was sold by Max Financial Services, Mitsui Sumitomo sold one per cent to the bank.
Max Life was incorporated on July 11, 2000 and is primarily engaged in the business of life insurance in India. As of March 31, 2015, it had a paid-up capital of Rs 1,919 crore. The gross premium collected by Max Life was Rs 8,172 crore in financial year ended March 31, 2015.
In October 2015, Max Financial Services (earlier called Max India) had informed the exchange about the proposal to increase the equity participation of Axis Bank Max Life Insurance.
The insurance company is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance Company.
