Max Financial spurts ~5% on getting IRDAI approval for acquisition of 5.17% stake in Max Life

28 Nov 2022 , 09:19 AM

Max Financial Services Limited (MFSL) announced that it has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to acquire the remaining 5.17% stake in Max Life Insurance Company Limited held by Mitsui Sumitomo Company Limited (MSI).

This transaction involves the purchase of 9.91 crore shares of Max Life by MFSL, Max Life’s parent company, at Rs85 per share under the Put/Call option approved by the MFSL Board on March 3, 2020, and subsequently by its shareholders on 27 May 2020.

Previously, MFSL owned a 72.52% stake in Max Life, while MSI owned a 25.48% stake. In December 2020, MFSL exchanged 20.57% of Max Life’s paid-up equity share capital held by MSI for 21.87% of MFSL’s issued and paid-up share capital.

MSI acquired a 0.26% stake in Max Life from Axis Bank in March 2021, increasing MSI’s stake to 5.17%. As a result, MFSL was waiting for IRDAI approval to transfer the remaining 5.17% stake held by MSI. After the MSI balance stake buyout of 5.17% is completed, MFSL’s shareholding in Max Life will increase to 87%.

At around 9.20 AM, Max Financial Services was trading at Rs697.75 up by 4.92% from its previous closing of Rs665.05 on the BSE. The scrip opened at Rs680.05 and touched intraday high and low of Rs702.45 and Rs680.05 respectively.

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