Following this, the company said its material subsidiary Max Life Insurance has decided to participate in a bid according to the PFRDA (Registration of Pension Funds) Guidelines, 2021
Max Financial said that "if selected as a sponsor to be a Pension Fund Manager, Max Life will be required to set-up a separate wholly-owned subsidiary for this purpose."
Furthermore, the parent stated that Max Life is raising funds to Rs496cr through private placement of listed NCDs to strengthen its solvency capital from —197% as of June 30, 21 to —214%. As per current IRDA regulations, Max Life is required to maintain 150% as the solvency margins. The NCDs are proposed to be listed on NSE in the first week of August 2021.
On Sensex, Max Financial closed at Rs1120 per piece up by 0.4%.