Max Financial Services gets IRDA nod to acquire the balance 5.17% stake in Max life from Mitsui Sumitomo
New Delhi: Max Financial Services Limited (MFSL) on Monday said 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. This transaction entails purchase of 9.91 Cr 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 MSI’s 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%.