Max Financial Services opened itself almost 5.5% higher at Rs.899.30 and then rose to hit a new high at Rs.938.65. Volumes are up almost 2x.
The IRDA yesterday gave its formal approval for the acquisition of up to 12% stake in Max Life Insurance Company (Max Life) by Axis Bank and its subsidiaries, Axis Capital Limited & Axis Securities (together Axis Entities).
The IRDAI approval was an integral step in this long-awaited joint venture transaction which was first announced in April 2020.
As per the proposed transaction, Axis Entities have the right to acquire up to 19% stake in Max Life, of which, Axis Bank proposes to acquire up to 9%, and Axis Capital Limited and Axis Securities Limited together propose to acquire up to 3% 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 7% in Max Life, in one or more tranches, which they intend to acquire over the course of the next few years.
Max Financial owns and actively manages a 93.1% stake in Max Life Insurance.