Max Financial Services on Tuesday revealed that it has actually gotten approval from Insurance Regulatory and Development Authority of India (IRDAI) for capital infusion of Rs 1,612 crore by Axis Bank into the business’s product subsidiary, Max Life Insurance
As part of the offer, Max Life will provide almost 14,25,79,161 equity shares to Axis Bank for an aggregate financial investment of above discussed quantity. The business, in an exchange filing has actually stated that the capital infusion “will assist Max Life to support its future development aspirations, to enhance its capital position and to enhance solvency margins”.
While the monetary services business has actually gotten thumbs-up from the Pension Fund Regulatory and Development Authority (PFRDA) currently, it has actually likewise looked for approval from the Competition Commission of India (CCI) for the offer.
“Accordingly, the capital infusion of 1612 Crores by Axis Bank into Max Life will be consummated upon the approval from CCI,” Max Financial Services stated.
On August 9, 2023, the Board of Axis bank had actually authorized the proposition for the bank to instill Rs 1,612 crore in Max Life, leading to Axis Bank’s direct stake in Max Life increasing to 16.22% and the cumulative stake of Axis Entities increasing to 19.02%.
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