Max Financial gets IRDAI nod for acquiring residual stake in Max Life

28 Nov 2022 , 08:08 AM

MFSL announced that it has received approval from IRDAI to purchase the balance 5.17% stake held by MSI in Max Life. The transaction is expected to be concluded in the next fortnight. This transaction entails purchase of 9.91 crore shares of Max Life at Rs 85 per share by MFSL, the parent company of Max Life, as per the put/call option approved by the MFSL board on 3 March 2020 and subsequently by its shareholders on 27 May 2020. Analjit Singh, chairman, Max Group, said We thank IRDAI for this approval. The transaction will make the holding company structure simpler and help consolidate our shareholding in Max Life which will benefit all our shareholders by attracting more investor interest. Earlier, MFSL held a 72.52% stake in Max Life and MSI had 25.48% stake. In December 2020, MFSL swapped 20.57% of the paid-up equity share capital in Max Life held by MSI to MFSL in exchange for 21.87% of issued and paid-up share capital of MFSL (share swap transaction). In March 2021, MSI acquired 0.26% stake from Axis Bank, as a result MSIs stake in Max Life increased to 5.17%. Subsequently, MFSL was awaiting this approval from IRDAI for the transfer of balance stake of 5.17% held by MSI. Post completion of MSI balance stake buyout of 5.17% MFSL shareholding in Max Life will increase to 87% Max Life is the sole operating subsidiary of Max Financial Services. Max Life – a part of the $4-Bn Max Group, an Indian multi-business corporation – is Indias largest non-bank private life insurer and the fourth largest private life insurance company. It offers comprehensive protection and long-term savings solutions, through its multichannel distribution including agency and third distribution partners. MFSL is part of Indias leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages an 81.83% majority stake in Max Life Insurance, Indias largest non-bank, private life insurance company. The company is listed on the NSE and BSE. On a consolidated basis, MFSLs net profit rose 29.42% to Rs 51.29 crore on 0.1% decline in total income from operations to Rs 9316.09 crore in Q2 September 2022 over Q2 September 2021. Shares of MFSL rose 1.19% to Rs 665.05 on Friday, 25 November 2022. Powered by Capital Market – Live News