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Max Life Insurance invests ₹49.5cr in Capital SFB
June 20, 2023
Max Life Insurance Company Ltd, a subsidiary of Max Financial Services, has picked a 2.99% stake in Capital Small Finance Bank for ₹49.5 crore.
“This investment marks a significant milestone for Capital Small Finance Bank and reinforces our commitment to delivering exceptional value to our customers. It is a testament to the strength of our bank and the trust that Max Life Insurance Company Limited has placed in us,” Sarvjit Singh Samra, managing director, and chief executive officer, Capital Small Finance Bank, was quoted as saying in a release.
Capital Small Finance Bank was established in Jalandhar, Punjab, on 24 April 2016, after conversion from Capital Local Area Bank.
Max Life Insurance has been allotted a total of 1.06 million shares with a face value of ₹10, the statement said. Additionally, a premium of ₹458 per equity share has been paid. The pre-money valuation of Capital Small Finance Bank is ₹1,603 crore, while the post-money valuation is ₹1,652.5 crore. The investment is expected to increase the bank’s capital adequacy ratio (CAR) to 20.77%.
Max Life’s investment in Capital Small Finance Bank is a sign of confidence in the bank’s growth potential, the statement said, adding that the bank has been growing rapidly in recent years, and is well-positioned to continue to grow in the future.
It said that the investment will help Capital Small Finance Bank expand its lending and deposit base, and help the bank to strengthen its capital position. This will enable the bank to meet its regulatory requirements and to continue to grow sustainably, it said.
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