Axis Bank Ltd. plans to purchase an additional stake in Max Life Insurance Co. for a sum of Rs 336 crore. This acquisition will help the private bank strengthen its position in the life insurance business.
The Acquisitions, Divestments, and Mergers Committee of the board of directors on Wednesday approved increasing the company's stake in Max Life Insurance to 19.99%, the company said in an exchange filing.
Axis Bank and its subsidiaries, Axis Securities Ltd. and Axis Capital Ltd., will acquire an additional stake from Max Financial Services Ltd., the life insurance company's parent company.
The share purchase is subject to all requisite regulatory approvals. The bank is looking to complete the acquisition in the next two to three months after receiving regulatory approvals.
According to the regulatory filing, Axis Entities holds a 19.02% stake in the subsidiary of Max Financial Services Ltd.
On Wednesday, Axis Bank shares closed 3.11% higher at Rs 1,229 per share. This compares to a 0.18% decline in the NSE Nifty 50 Index.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
.jpg?im=FeatureCrop,algorithm=dnn,width=350)
