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Max Financial Services on Wednesday announced that the Insurance Regulatory and Development Authority of India (IRDAI) has 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).
“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.
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.
“In addition, 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,” the release said.
The two entities have been in a relationship for over a decade and the total premium generated through this relationship has aggregated to over ₹40,000 crore.
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