Axis Bank buys 4.99% stake in Max Life Insurance
Private-sector lender, Axis Bank said that it has bought 4.99 per cent stake in Max Life Insurance for Rs 95.75 crore.
“The Bank has purchased 9,57,48,762 shares of face value of Rs. 10/- each, or 4.99 per cent equity stake, in Max Life Insurance Company Limited ("MLIC") from Max Financial Services Limited ( "MFSL"), formerly known as Max India Limited, and Mitsui Sumitomo Insurance Company Limited ("MSI") for a total cash consideration at par (Rs. 10/- per share) of Rs. 95.75 crores,” the Bank said in a filing to the Bombay Stock Exchange.
The bank now owns 5.99 per cent stake in Max life Insurance. Axis Bank bought 3.99 per cent stake from Max Financial Services and 1 per cent stake from Mitsui Sumitomo Insurance Company.
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 in Max Life Insurance.
The insurance company is a joint venture between Max Financial Services and Mitsui Sumitomo Insurance Company.
Meanwhile, shares of the Bank were trading at Rs 387.20 apiece, up 3.18 per cent from the previous close at 10:11 hours on BSE.