Axis Entities will own 12.99 percent stake in Max Life.
Axis Bank decided to pull the shutters on the operations of its UK subsidiary in July last year (Representative image)
Private sector lender Axis Bank on April 6 said the Axis group entities have become the co-promoters of Max Life Insurance following the acquisition of a 12.99 percent stake in the insurance firm.
The two subsidiaries, Axis Capital Limited and Axis Securities Limited, together with the bank– are now the co-promoters of Max Life Insurance after completion of the acquisition of 12.99 percent in Max Life, the bank said in a release.
The board of Max Life recorded the closure of the deal on April 6, the bank said, adding that following the development, Max Life’s board will be recast with three Axis nominees.
Further, the Axis Entities have a right to acquire an additional stake of up to 7 percent in Max Life, in one or more tranches, subject to regulatory approvals.
The transaction was completed after the Insurance Regulatory and Development Authority of India (IRDAI) gave its formal approval in February this year.
Max Life’s holding company Max Financial Services Limited and Axis Bank had first announced their intent to bring in the latter as a strategic partner in Max Life in February 2020.