Axis Bank enters revised agreement with Max Life Insurance

11 Jan 2023 , 11:01 AM

Axis Bank announced that it has revised its agreement in response to IRDAI guidance and will acquire the remaining stake in Max Life Insurance at fair market value using discounted cash flows rather than valuation.

The company stated in its exchange filing that it has entered into revised agreements with Max Financial on January 9, 2023. It has agreed to acquire the balance 7% equity stake in Max Life at Fair Market Value (FMV) using Discounted Cash Flows instead of valuation as per Rule 11UA of the Income Tax Rules, 1962.

Under definitive agreements, the lender announced in 2021 the acquisition of equity shares in Max Life Insurance Company Limited (Max Life), a material subsidiary of Max Financial Services Limited (Max Financial), by Axis Bank and its subsidiaries, Axis Securities Limited and Axis Capital Limited.

Max Financial Services Limited, Max Life’s holding company and Axis Bank first announced their intention to bring the latter on board as a strategic partner in Max Life in February 2020. In April 2022, Axis Bank announced its intention to purchase a 30% stake in Max Life Insurance for approximately Rs1,530 crore.

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