Shares of HDFC and Max Financial Services rose by 1.10% to 19.43% at 10:06 IST on report that insurance units of both these firms are in talks to create the country's biggest private life insurer.
Index heavyweight and housing finance major HDFC was up 1.10% at Rs 1214.50.
Max Financial Services was up 19.43% at Rs 512.
Meanwhile, the S&P BSE Sensex was up 110.21 points, or 0.42% at 26,635.67.
According to a media report, HDFC Life and Max Life are in talks to create the country's biggest private life insurer as stiff competition and regulatory hurdles force firms to find new ways of growing market share and profitability. The board of HDFC Life is meeting in Mumbai today, 17 June 2016, to discuss the proposal, the report said.
Max Life is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance (MSI), a Japan headquartered global leader in insurance. Max Financial Services holds 68.01% equity in Max Life, while MSI holds 26%.
HDFC Standard Life Insurance Company (HDFC Life) is a partnership between HDFC, India's leading housing finance institution and Standard Life, a global long term investment savings player. Currently HDFC holds 61.63% and Standard Life (Mauritius Holdings) 2006 holds 35% of equity in HDFC Life, while the rest is held by others.
Reports added that it will be a dual merger, where HDFC Life would merge with Max Life and later the merged entity would merge with Max Financial Services.
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