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 percent 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, it said in a regulatory filing.
This transaction entails purchase of 9.91 crore 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 March 3, 2020 and subsequently by its shareholders on May 27, 2020, it said.
Analjit Singh, Chairman at 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, Max Financial held a 72.52 percent stake in Max Life and MSI had 25.48 percent stake. In December 2020, MFSL swapped 20.57 percent of the paid-up equity share capital in Max Life held by MSI to MFSL in exchange for 21.87 percent of issued and paid-up share capital of MFSL (Share Swap Transaction).
In March 2021, MSI acquired 0.26 percent stake from Axis Bank, as a result MSI’s stake in Max Life increased to 5.17 percent. Subsequently, MFSL was awaiting this approval from IRDAI for the transfer of balance stake of 5.17 percent held by MSI.
Post completion of MSI balance stake buyout of 5.17 percent, MFSL shareholding in Max Life will increase to 87 percent, the filing said.
Max Financial owns and actively manages an 81.83 percent majority stake in Max Life Insurance, India’s largest non-bank, private life insurance company. Analjit Singh and sponsor family holds 14.7 percent.
First Published: Nov 28, 2022 9:20 AM IST
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