Axis Bank acquires 4.99% stake in Max Life Insurance at Rs. 95.75 crore

The bank has bought 4.99% stake in Max Life Insurance for Rs 95.75 crore. The bank now owns 5.99% stake in Max life Insurance.

Axis Bank has informed BSE that on February 29, 2016, the Bank has purchased 9,57,48,762 shares of face value of Rs. 10/- each, or 4.99% equity stake, in Max Life Insurance Company Limited ("MLIC") from Max Financial Services Limited ( "MFSL"), formerly known as Max India Limited, and Mitsui Sumitomo Insurance Company Limited ("MSI") for a total cash consideration at par (Rs. 10/- per share) of Rs. 95.75 crores.

Of this, Axis Bank has acquired 7,65,60,635 shares of face value of Rs. 10/- each, or 3.99% equity stake in MLIC, from MFSL for an aggregate cash consideration at par (Rs. 10/- per share) of Rs. 76.56 crores and 1,91,88,127 shares of face value of Rs. 10/- each, or 1% equity stake in MLIC, from MSI for an aggregate cash consideration at par (Rs. 10/- per share) of Rs. 19.19 crores, post receipt of requisite regulatory approvals. Consequent to this transaction. Axis Bank’s equity stake in MLIC has increased to 5.99%.

MLIC, a joint-venture between MFSL and MSI, was incorporated on July 11, 2000 and is primarily engaged in the business of life insurance in India. As of March 31, 2015, MLIC is one of the leading life insurers in India with a paid-up capital of Rs. 1,919 crores. The gross premium collected by the MLIC was Rs. 8,172 crores in financial year ended March 31, 2015, Rs. 7,279 crores in financial year ended March 31, 2014 and Rs. 6,639 crores in financial year ended March 31, 2013.