Axis Bank announced on June 19 that it is acquiring an additional stake in Max Life Insurance, a subsidiary of Max Financial, at a cost of Rs 336 crore. This move increases the aggregate shareholding of Axis entities in Max Life from 19.02% to 19.99%, according to an exchange filing by the lender.
The transaction aims to bolster Axis Bank’s presence in the life insurance sector, aligning with its strategic investment plans in Max Life Insurance.
Shares of Axis Bank were trading higher as of 1:30 pm, reflecting investor confidence in the bank’s strategic move. Meanwhile, Max Financial’s stock saw subdued performance after slipping from early highs.
“In continuation of the existing investment, this acquisition would strengthen the Bank’s position in the Life Insurance business,” Axis Bank stated in its exchange filing.
The board of Axis Bank had previously approved a Rs 1,612-crore infusion into Max Life Insurance Company Limited in August 2023. This investment was part of a Share Subscription Agreement for a Preferential Issue at a fair market value of Rs. 113.06 per share.
This latest stake acquisition underscores Axis Bank’s commitment to expanding its footprint in the insurance sector, leveraging synergies between banking and life insurance services.
