Max Financial Services, Max Life call joint board meeting on Analjit Singh stake sale

Max Financial Services and Max Life Insurance have called a joint board meeting on Thursday to discuss stake sale of Max Group chairman Analjit Singh in a group company.

The meeting between the managements of the two companies, which is expected to start at 11 am, was called at a short notice to discuss a special item.

Sources told CNBC-TV18 that the boards of the two companies are likely to discuss a proposal under which Axis Bank is expected acquire a part stake belonging to Analjit Singh in Max Financial Services.

Analjit Singh, chairman of Max Group, owns 28.31 percent stake in Max Financial Services and 71.54 percent of his holding in the company is pledged.

Axis Bank’s move to acquire stake from Analjit Singh will help the Max Group chairman to deleverage his pledged position and the move will help Axis Bank get an indirect entry into the life insurance space through Max Life Insurance, which is a subsidiary of Max Financial Services.

CNBC-TV18 sent query to Max Financial Services and Axis Bank. Analjit Singh in his reply confirmed the joint board meeting of Thursday, but declined to comment on the specifics. Axis Bank is yet to reply.