India's Axis Bank to raise stake in Max Life via 16.12 bln rupee investment (updated)

Max Financial Services

09/08/2023 14:29

(Adds details on investment, background on deal)
       BENGALURU, Aug 9 (Reuters) - 
    India's Axis Bank  AXBK.NS  on Wednesday said it will raise
its stake in insurer Max Life to 16.2% from 9.99% by infusing
16.12 billion rupees ($194.6 million) through a preferential
allotment of shares. 
    Axis Bank along with its entities acquired a 12.99% stake in
Max Life in 2021, and through this new investment they will own
19.02% in the insurer.
        Max Financial Services  MAXI.NS , the holding company of
Max Life, will hold about 80.98% in the insurer.
  
        The proposed infusion by Axis Bank in Max Life will help
it to support its future growth ambitions, Max Financial
Services said in a statement.
  
        The investment is subject to regulatory approvals and
will strengthen the lender's position in the life insurance
business, Axis Bank said, adding that Axis Entities would have
the right to appoint the chairman.
  
        Axis Bank, which held a minority stake in Max Life
before the 2021 deal, had originally proposed to acquire nearly
30% in the insurer, but cut down the stake purchase plan due to
certain regulatory roadblocks. 
  
        At Axis Bank's post earnings press conference last
month, CEO Amitabh Chaudhry said the lender intends to stick to
its plan to acquire up to 20% in Max Life.  
  
        
  
    

($1 = 82.8460 Indian rupees)

 (Reporting by Sethuraman NR in Bengaluru; Editing by Sohini
Goswami and Sonia Cheema)
 ((Sethuraman.NR@thomsonreuters.com; (+91 9945291420); Reuters
Messaging: nallur.sethuraman.thomsonreuters.com@reuters.net))