India's Max Financial jumps after Axis Bank stake buy in Max Life

Max Financial Services

11/01/2023 05:55

** Shares of private life insurer Max Financial  MAXI.NS 
rise as much as 4.13% to 802 rupees, highest in over three
months since Sept. 23, 2022
    ** The stock jumped 4.07% in the previous session after Axis
bank announced it will buy balance 7% stake in Max Life from Max
Financial at a revised formula
    ** Axis Bank  AXBK.NS  and its subsidiaries has already
acquired 12.99% stake in Max Life
    ** Max Life is a subsidiary Max Financial Services
    ** With the 7% stake acquisition, Axis Bank will own about
20% stake in Max Life as envisaged earlier, reducing any
uncertainty on the transaction, says Kotak Institutional
Equities
    ** Revision in valuation formula is a realignment of
regulatory guidance and stamp of certainty on the deal: Kotak 
    ** Max Financial's valuations remain expensive and stage is
set for the merger of Max Financial with Max Life and the 
eventual listing of the merged entity: Kotak
    ** Trading volume is 18,27,075 shares as of 11:15 a.m. IST,
1.5x the 30-day avg of 12,10,478 shares
    ** Of the six analysts tracking the company, 14 maintain
"buy", one suggests "hold" and one recommends "sell"; the median
TP is 945 rupees
($1 = 81.7700 Indian rupees)
 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; Mobile:
+919769003463))