Max Financial Services Secures Fresh Capital: The Real Story Inside
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Issue price fixed at Rs 151.90 per share; Axis entities to collectively hold 19.99 per cent post allotment.
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The Board of Directors of Axis Max Life Insurance Limited has considered a proposal to raise funds through the issuance of equity shares on a preferential basis to Axis Bank Limited. The aggregate investment by Axis Bank in Axis Max Life will be up to Rs 389 crore, at a fair market value determined by registered valuers and Category 1 Merchant Bankers using the discounted cash flow method.
A total of 2,50,56,200 equity shares of face value Rs 10 each will be issued at Rs 151.90 per share, which includes a share premium of Rs 141.90 per share. The issue is a preferential allotment in accordance with applicable law, including Sections 42 and 62 of the Companies Act, 2013.
Upon completion of the proposed infusion, Axis Bank, Axis Capital Limited, and Axis Securities Limited will collectively hold 19.99 per cent of the equity share capital of Axis Max Life. Before this transaction, Axis Bank held 16.22 per cent of Axis Max Life's equity. Post allotment, its holding will increase to 17.23 per cent. The holdings of Axis Capital Limited and Axis Securities Limited remain unchanged at 1.84 per cent and 0.92 per cent, respectively. Following the completion of this transaction, Max Financial Services Limited's shareholding in Axis Max Life will stand at approximately 80.01 per cent.
Axis Bank has received the requisite approval from the Reserve Bank of India for this infusion. The proposed transaction is subject to approval of shareholders of Axis Max Life and all other necessary corporate approvals.
About the Company
Max Financial Services Limited, incorporated on 24 February 1988, is part of India’s leading business conglomerate – the Max Group. The company is primarily engaged in growing and nurturing business investments and providing management advisory services to Indian group companies. It owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank life insurer and 4th largest private life insurance company.
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Disclaimer: The article is for informational purposes only and not investment advice.