The private lender proposes to acquire 17.002% stake in Max Life Insurance Company as against 29.002% proposed earlier.
As per the deal struck in April, Axis Bank was to raise its stake in Max Life from 1% to 30% for Rs 1,592 crore, elevating their bancassurance partnership to a JV. As per the revised deal, Axis Bank will acquire 17.002% of the equity share capital of Max Life, resulting in total ownership of 18% post the transaction.
The parties have executed the definitive agreements for the same. Axis Bank and Max Life Insurance Company will shortly approach the respective regulatory authorities, with revised applications for their consideration and approval. The transaction is subject to regulatory approvals, the private lender said in a BSE filing made after market hours yesterday.
Shares of Axis Bank gained 0.63% to Rs 448.50. Max Financial Services jumped 7.68% to Rs 591.90.
Axis Bank is the third largest private sector bank in India. As on 30 June 2020, it had a network of 4,528 domestic branches and extension counters situated in 2,559 centres spread across the country.
The bank's net profit dropped 18.82% to Rs 1,112.17 crore while total income remained almost flat at Rs 19,125.57 crore in Q1 June 2020 over Q1 June 2019.
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