Private insurer Max New York Life today said it has received all regulatory approvals to dilute 4% stake to its bancassurance partner Axis Bank.
"We are in the final stage of diluting 4% stake. We have already received approval from Insurance Regulatory and Development Authority (IRDA) to dilute 4% stake to Axis Bank," Max New York Life Managing Director and CEO Rajesh Sud told reporters here after declaring the results.
Similarly, Axis Bank has also received the Reserve Bank's approval to purchase the stake from the private insurer, he added.
This dilution agreement, which will further strengthen the capital requirement of the private insurer, is for 10 years with an option to review equity after three years, he said.
However, he did not disclose the amount to be raised through this dilution and said the embedded valuation will be disclosed by the end of this month or June.
Axis Bank, the third-largest Indian private bank, and Max New York Life Insurance have forged a 10-year bancassurance agreement under which the former will help strengthen the private insurer's strategy of multi-channel distribution and presence across the nation.
When asked about its initial public offering plans, Sud said, there are no immediate plans to hit the capital markets as the insurer has enough capital required for the business.
"We have 322% capital against the mandatory requirement of 150%," he said.
Max New York Life Insurance Company is a joint venture between Max India and New York Life International, the international arm of New York Life, a Fortune 100 company.
