Max Financial Services Limited (MFSL) announced that it has received approval from the Insurance Regulatory and Development Authority of India (IRDAI) to purchase the balance 5.17% stake held by Mitsui Sumitomo Company Limited (MSI) in Max Life Insurance Company Limited (Max Life). The transaction is expected to be concluded in the next fortnight.
Earlier, Max Financial Services Limited (MFSL) held a 72.52% stake in Max Life and MSI had a 25.48% stake
This transaction entails the purchase of 9.91 crore shares of Max Life at ₹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 a 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 the issued and paid-up share capital of MFSL (Share Swap Transaction).
In March 2021, MSI acquired a 0.26% stake from Axis Bank, as a result, MSI’s stake in Max Life increased to 5.17%. Subsequently, MFSL was awaiting this approval from IRDAI for the transfer of the balance stake of 5.17% held by MSI. Post completion of MSI balance stake buyout of 5.17%. MFSL’s shareholding in Max Life will increase to 87%.
Max Financial Services Limited (MFSL) is part of India’s leading business conglomerate – the Max Group. Focused on Life Insurance, MSFL owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company. Max Life is the sole operating subsidiary of Max Financial Services Limited. Max Life – a part of the $4-Bn Max Group, an Indian multi-business corporation – is India’s largest non-bank private life insurer and the fourth largest private life insurance company.
