IRDAI gives nod to Max Financial Services to acquire remaining 5.17% stake in Max Life Insurance

Insurance Regulatory and Development Authority of India (IRDAI) has granted approval to Max Financial Services to acquire the remaining 5.17 per cent stake in Max Life Insurance from Mitsui Sumitomo, the company announced in a filing. Following the transaction, Max Financial’s shareholding in Max Life will increase to 87 per cent. It said that it expects the transaction to be complete in the next fortnight. 

The transaction will involve the purchasing of 9.91 crore shares of Max Life at Rs 85 per share by Max Financial, which is the parent company of Max Life. The transaction was approved by the Max Financial board on March 3, 2020 and by shareholders on May 27, 2020. 

Analjit Singh, Chairman, Max Group, thanked IRDAI for the approval and said that the transaction will make the holding company structure simpler and help consolidate their shareholding in Max Life, benefiting the shareholders by attracting more investor interest.

Max Financial held a 72.52 per cent stake in Max Life, while Mitsui Sumitomo held 25.48 per cent. In December 2020, Max Financial swapped 20.57 per cent of the paid-up equity share capital in Max Life held by Mitsui Sumitomo to Max Financial in exchange for 21.87 per cent of issued and paid-up share capital of Max Financial. 

The company stated that Mitsui Sumitomo acquired 0.26 per cent stake from Axis Bank in March 2021, which increased its stake in Max Life to 5.17 per cent. Following this, Max Financial was awaiting IRDAI’s approval for the transfer of the remaining 5.17 per cent held by Mitsui Sumitomo. 

Max Financial owns and actively manages an 81.83% majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company. Analjit Singh and sponsor family holds 14.7 per cent. 

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