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Axis Bank to infuse ₹1612cr funds in MaxLife
August 10, 2023
Axis Bank will raise its stake in Max Life to 16.22% from 9.99%by infusing ₹1,612 crore through a preferential allotment of shares. Axis Bank, along with its entities (Axis Securities and Axis Capital), acquired a 12.99% stake in Max Life in 2021, and through this new investment, they will own 19.02% in the insurer.
“This is with reference to our earlier letters dated April 28, 2020, July 23, 2020, August 24, 2020, October 30, 2020, February 24, 2021, April 6, 2021, and January 10, 2023, informing that Axis Bank Limited (“Axis Bank”) and its subsidiaries, i.e., Axis Securities Limited and Axis Capital Limited (together referred to as “Axis Entities”) have entered into agreements (including amendments thereto) with Max Financial Services Limited (“Max Financial”), with regard to the acquisition of equity stake of Max Life Insurance Company Limited (“Max Life”) and matters incidental thereto,” Axis Bank in a stock exchange filing said.
In this regard, we would now like to inform you that the Acquisitions, Divestments, and Merger Committee of the Board of Directors of the Bank at their meeting held on August 9, 2023, has approved the proposal for the Axis Bank to infuse ₹1,612 crores in Max Life through preferential allotment, resulting in Axis Bank’s direct stake in Max Life increasing to 16.22% and the collective stake of Axis Entities increasing to 19.02%, it said.
As communicated vide our letter dated January 10, 2023, the aforesaid acquisition would be done at Fair Market Value using Discounted Cash Flow method. The Bank will now enter into a Share Subscription.
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