Max Financial Services today approved raising of Rs 5,000 crore in one or more tranches to fuel the growth of its subsidiary Max Life Insurance.
The decision was taken at the company's board of directors meeting held today.
The board considered raising of funds by way of debt for the purpose of making investments in its subsidiary Max Life Insurance Company Ltd (Max Life) to enable it to drive growth through acquisition opportunities, Max Financial Services said in a regulatory filing.
The board approved availing of borrowing in one or more tranches "for an amount aggregating up to Rs 5,000 crore", the filing said.
The fund raising is subject to approval from shareholders and other regulatory requirements.
Stock of the company closed 1.80 per cent up at Rs 433.65 on the BSE.