Axis Bank on Tuesday said that the private sector lender along with its two subsidiaries — Axis Capital Limited and Axis Securities Limited — has become co-promoters of Max Life Insurance Company Limited after completion of acquisition of 12.99 per cent stake collectively into the insurance company.
“The board of Max Life recorded the closure of the deal today. The transaction was completed after the Insurance Regulatory and Development Authority of India gave its formal approval in February this year,” Axis Bank said in a regulatory filing. The Competition Commission of India gave its approval in January.
“The Axis entities have a right to acquire an additional stake of up to 7 per cent in Max Life in one or more tranches, subject to regulatory approvals, With the conclusion of this transaction, Max Life’s board will be strengthened further, with co-option of three nominee directors of Axis entities on its board,” the filing said.
Max Life’s holding company Max Financial Services Limited and Axis Bank had first announced their intent to bring the latter as a strategic partner in the life insurance company in February 2020.
Commenting on the development, Amitabh Chaudhry, MD and CEO of Axis Bank said that the lender has been a long term partner to Max Life and have contributed to the deepening of insurance penetration in India over the last decade.
