Max Financial Services is having a fantastic run on the bourses today. From its close of Rs.549, it first hit the 15% UC at Rs.604.65 and then went on to hit a new high at Rs.630.90; its UC is not too far now at Rs.632.15.
Without disclosing the financial terms, Max Financial said that Axis Bank had pared its stake buying plan in Max Life Insurance from 29% to 17%.
The parties have executed the definitive agreements. Axis Bank and Max Life will shortly approach the respective regulatory authorities, with revised applications for their consideration and approval.
This is being viewed as a positive news as it has brought down uncertainty over the distribution tie-up with Axis; more importantly, Max Financial will now retain a much higher stake than earlier envisaged in the life insurance company.