The shares of Max Financial Services Ltd hit fresh highs during the morning trade on Thursday after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval for the acquisition of up to 12 per cent stake in Max Life Insurance company by Axis Bank and its subsidiaries.

At 1:30 pm, it was trading at ₹891.65 on the BSE, up ₹38.30 or 4.49 per cent. It hit a 52-week high of ₹938.65. It opened at ₹899.30 as against the previous close of ₹853.35.

On the NSE, it was trading at ₹891.30, up ₹38.60 or 4.53 per cent. It hit a 52-week high of ₹953.70.

Max Financial Services on Wednesday announced that the IRDAI had given its formal approval for the acquisition of up to 12 per cent stake in Max Life Insurance company by Axis Bank and its subsidiaries, Axis Capital and Axis Securities (Axis entities).

Also read: IRDAI nods Axis Bank’s stake buy in Max Life Insurance

Under the proposed transaction, Axis entities can acquire up to 19 per cent stake in Max Life, of which, Axis Bank proposes to acquire up to nine per cent, and Axis Capital and Axis Securities together propose to acquire up to three per cent of the share capital of Max Life in the first leg of the transaction.

Additionally, “Axis entities have the right to acquire an additional stake of up to seven per cent in Max Life, in one or more tranches, which they intend to acquire over the course of the next few years,” as per the official release.

“The IRDAI approval was an integral step in this long-awaited joint venture transaction which was first announced in April 2020,” it said in a statement.

Related Topics
comment COMMENT NOW