Axis Bank nods an investment of Rs 1,612 crore in Max Life Insurance Company

The board of Axis Bank approved an investment of Rs 1,612 crore in Max Life Insurance Company Limited, a significant subsidiary of Max Financial Services Limited, on August 9. The bank reported that the proposal for the investment through preferential allocation has been approved by the Acquisitions, Divestments and Merger Committee.

"... Axis Bank Limited (“Axis Bank”) and its subsidiaries, i.e., Axis Securities Limited and Axis Capital Limited (together referred to as “Axis Entities”) have entered into agreements (including amendments thereto) with Max Financial Services Limited (“Max Financial”), with regard to acquisition of equity stake of Max Life Insurance Company Limited (“Max Life”) and matters incidental thereto," Axis Bank's exchange filing said.

Axis Bank has announced that the bank will now enter into a Share Subscription Agreement with Max Life for the proposed purchase of 14,25,79,161 fully paid-up equity shares with a face value of Rs. 10 each through subscription to the preferential issue at a fair market value of Rs. 113.06 per share (arrived at as per extant regulations and including a share premium of Rs. 103.06 per equity share).

Source: Media Reports