Axis Bank to acquire 17% in Max Life Insurance instead of 29%

Axis Bank has decided to cut down on its investments in Max Life Insurance. It now plans to acquire 17.002 per cent of the equity share capital of the life insurer.

This will result in total ownership of 18 per cent post the transaction, Axis Bank said in a regulatory filing on Monday.

The private sector lender had in April announced plans to acquire 29 per cent stake in Max Life Insurance. This would have taken its overall shareholding in the insurer to 30 per cent.

“The parties have executed the definitive agreements. Axis Bank and Max Life will shortly approach the respective regulatory authorities, with revised applications for their consideration and approval,” Axis Bank further said, adding that the transaction is subject to regulatory approvals.

The lender did not specify the reasons for this change in plans but it is understood that the Insurance Regulatory and Development Authority of India had wanted some changes in the proposed agreement.

Axis Bank’s scrip gained 1.2 per cent and closed at ₹445.70 apiece on BSE.